Credit Suisse's ambitions in Europe's largest market are hitting a stumbling block: the Swiss bank is poised for a loss-making 2019 in Germany, finews.com can reveal.
Germany is the largest Swiss banking market – but remains tough to turn profitable. Credit Suisse is no exception, with losses at its German subsidiary poised to deepen, according to data deposited with a local regulator.
The Swiss bank's loss of 8.6 million euros in 2017 deepened last year, according to co-heads Joachim Ringer and Bjoern Storim: they expect to report a German loss of more than 53 million euros, according to the filing. A spokesman for Credit Suisse confirmed the projections in the filing.
Redoubling Efforts
The renewed loss is a setback for Credit Suisse in Germany, which employs 130 people. Last year, the Swiss bank redoubled its efforts with wealthy German clients; the bank also wants to target independent asset managers, family offices, portfolio managers, insurance companies, and pension funds.
Credit Suisse's goal is to lift its share with independent asset managers by 15 percent. The wealth manager dropped out of the German onshore banking race seven years ago, selling its business to rival Bethmann Bank.
Ultra-Rich Push
Since then, Credit Suisse has tasked roughly 12 private bankers with targeting the wealthiest segment – Germans with more than 50 million euros in assets (their assets are however booked in Zurich).
Besides a solid investment bank as a corporate adviser and trading machine, Credit Suisse also offers asset management in Germany. For 2019, the German subsidiary suffered a «Brexit effect» as well: the unit would have assumed responsibility for the credit book of Credit Suisse's U.K. arm had Britain crashed out of the EU suddenly last year.
