Credit Suisse to reorganise as profits jump
[ZURICH] Credit Suisse announced Thursday it would reorganise operations to create a global investment bank and announced quarterly profits jumped by nearly a quarter.
The move will see Credit Suisse merge several existing business units "to form a globally integrated Investment Bank to achieve critical scale," the bank said in a statement.
Nevertheless, Credit Suisse said it would retain its focus on global wealth management.
The bank also announced plans to cut 400 million Swiss francs (S$601.8 million) from operating expenses from 2022.
"The changes should allow us to extract significant potential to improve effectiveness and efficiency, navigate the current environment with the necessary far-sightedness, and to unlock additional growth potential in the future to the benefit of our clients," chief executive Thomas Gottstein said.
During the second quarter net profits rose by 24 per cent to nearly 1.2 billion Swiss francs.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Revenues climbed 11 per cent from the second quarter last year to 6.2 billion thanks to investment banking and trading operations.
The bank said it plans to release the second part of its 2019 dividend if shareholders approve at the November general shareholders meeting.
The bank, like many of its peers, split the 2019 dividend payment into two parts after regulators urged caution about handing investors cash until the impact of the coronavirus pandemic becomes clearer.
AFP
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
Great Eastern chairman appeals for patience as shareholders fume over share price ‘disaster’
S&P Global first-quarter profit beats estimates on strong product demand
Thai banks cut rate for some borrowers after push from PM
Money laundering accused who faces 22 charges to plead guilty on May 14
BNP Paribas beats estimates as lower costs offset trading slump
Japan brokerage Daiwa’s Q4 profit more than doubles as markets recover