The much-anticipated investor day at Credit Suisse shows CEO Thomas Gottstein focusing on risks.
As was evident leading up to today's Investor Deep Dive, Credit Suisse is affirming its strategy adopted in November, with the event focusing on risk culture, compliance, technology, and closing with wealth management, according to the banks.
Credit Suisse has already warned about a loss and hints about the second quarter are thin.
The bank has been paring its position in riskier businesses, indicating its loan book shrank by 17 percent year-on-year in the first quarter of 2022. With the exit from prime brokerage services for financial investors, risk-weighted assets in this area fell by 83 percent, while credit exposure in wealth management's shipping finance business shrank by 22 percent.
The reduction in risks was offset by additional costs in compliance. According to the report, the number of people employed in the monitoring departments has increased from 2,200 to 2,500 since 2020. Meanwhile, compliance costs climbed from 430 million Swiss francs to 500 million, which Credit Suisse estimates it will spend on related tasks this year. Compared to 2019, that represents an increase of some thirty percent.
more to follow
