New CEO Thomas Gottstein is quickening the pace of the Swiss bank’s shift towards wealthy clients – and making the journey sweeter for investors.
A renewed emphasis on private banking and more out of its investment bank: the Zurich-based lender's outline is similar to ex-CEO Tidjane Thiam's 2015 plan to restructure the Swiss lender. Since replacing him in February as CEO, Thomas Gottstein is stepping up the pace, disclosing the imprint at an investor event on Tuesday.
Credit Suisse wants to hike pre-tax profit in its various wealth management activities to as much as 5.5 billion Swiss francs ($6.2 billion) and hike its return on regulatory capital to within a range of 20 to 25 percent in the mid-term. The bank caters to super-rich clients in three units: wealth management, Asia-Pacific, and Switzerland.
Asset Management Boost
Within the private banking arm, which is run by Philipp Wehle, its asset management activities are to pitch in more than 40 percent, Credit Suisse said. Its investment bank targets 10 to 15 percent returns.
Shareholders are to benefit: the bank said it wants to lift annual payouts by at least five percent per year, including a planned dividend for this year. Last year, it paid out a 0.2776 franc per share dividend to investors.
However, Credit Suisse didn't mention reaching the return goal of ten percent this year – something it had done as recently as February. The bank, Switzerland's second-largest after UBS, is due to install Lloyds boss António Horta-Osório as chairman in April, replacing long-standing and controversial overseer Urs Rohner.
More to follow
