The head of Credit Suisse's Swiss unit, André Helfenstein, is confident the institution will weather the current crisis well and emerge stronger. Nevertheless, the bank's reputation is still suffering.
The bank's strategy announcement at the end of October was «well received in principle» by clients and the market, said the head of Credit Suisse Switzerland, André Helfenstein, in an interview with the Swiss daily NZZ» (in German, behind paywall).
The bank's problems stem not from its home market, but outside it, adding it had an impact on the mood among staff and clients. «On the one hand, employees are unsettled, tired, also frustrated. It was a difficult year for the bank, even though many employees, especially in Switzerland, delivered very good work. On the other hand, the organization has good energy and strong cohesion.»
Attacked by Competitors
Helfenstein did not elaborate on whether the bank was able to stop the outflow of client funds in Switzerland. The important thing, he said, was to hit clients again and again. «Customers are very unhappy with the institution's reputation and the noise about Credit Suisse. But the bond with the advisors was deciding whether clients stayed or not,» Helfenstein said.
He conceded that staff turnover is currently above normal levels, albeit only marginally. «Of course, we are under attack from competitors, but we don't have a fundamental problem with departures in Switzerland.» Departures have mainly affected areas such as client advisory, technology, and specialized functions, like digitalization.
Less Volatile Bank
Helfenstein said the new course the bank is taking is the correct one. «With the new strategy, we are creating a more stable, less volatile bank. This benefits Switzerland and strengthens its position in the company.» He said headcount reduction would affect Switzerland less in relative terms, and «it will not lead to radical changes in the Swiss business.»
The bank plans to reduce the number of employees worldwide by around 9,000 to 43,000 by 2025. Of these, 2,000 will be in Switzerland, affecting all units based in Switzerland, including many group functions, Helfenstein said.
Differentiating Between Jobs and People
Around 6,000 of the 16,000 Credit Suisse employees in Switzerland fall under Helfenstein's responsibility and he says «it is important to distinguish jobs and people. Thanks to our social plans, we've always managed to give those employees who were affected by job cuts a new chance.»
He was positive about the new bank's new CSX digital offering for private customers. «We set a target of over 200,000 customers in 2022. We've clearly exceeded that target, cracking the 300,000 mark a few days ago.»
Looking ahead, he is optimistic. «Many customers tell us they felt that CS employees were eager to deliver good work. When this crisis is over, we will emerge stronger than before.»
