After initially saying that investors would have to wait until the end of October for the results of its strategic review, Credit Suisse said it is making progress on those goals.
After announcing a strategic review following its second-quarter results and saying investors will have to wait until the third quarter for an update, and that it would not comment until then, Credit Suisse is now doing just that. In responding to «media and market speculation» it said it is «well on track» with its comprehensive strategic review which includes potential divestitures and asset sales, according to a statement from the bank on Monday.
Today's statement appears to have been prompted by a «Reuters» report Saturday, citing a memo addressing client and employees' questions around its strategic review. The internal memo, also obtained by finews.com, from Chairman Axel Lehmann and Ulrich Koerner, said they «understand that this is a time of great uncertainty for the whole organization, and this can cause additional strain for our people», and that they felt it was important to share their position.
Ambitious Timeline
«When we launched our strategic review, we committed to an ambitious timeline whilst also making it clear that we would carry out a rigorous and diligent evaluation of all options for Credit Suisse. We want to establish a clear path for the bank that will strengthen our franchise in the long term. This process requires time and significant effort from many parts of the organization,» Lehmann and Koerner said in the memo.
Heightened Speculation
In response to a «heightened level of media and market speculation about the potential outcome» of the review over the past day, it said it remains committed to giving further details on its plans to strengthen wealth management and make the investment bank a capital-light advisory led business. In addition, it aims to focus more on the markets business and evaluate options for its securitized products, including attracting outside capital, according to today's statement.
Credit Suisse also reiterated that it seeks to cut its cost base below 15.5 billion Swiss francs.
Going Beyond
The statement went on to say that the board of directors and the executive board are «considering alternatives that go beyond the conclusions of last year's strategic review» and is currently executing several strategic initiatives, including potential divestitures and asset sales.
Among the media speculation that Credit Suisse is presumably referring to are reports that it will cut up to 5,000 positions and potentially split up its investment bank into three units as finews.com and other media outlets have reported.
In July, Credit Suisse released its second-quarter earnings which the bank itself said were «disappointing.» In conjunction with the release of the results, the bank announced it was replacing CEO Thomas Gottstein with Ulrich Koerner.
Credit Suisse will release the details of its strategic review on October 27 with its third quarter results.
Until then, there will be more speculation on what Credit Suisse will be undertaking to meet the stated goals of its strategic review.
