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Bloomberg
When Ulrich Koerner unveiled a plan to salvage Credit Suisse Group AG in October, the chief executive officer promised to create a new bank. His subsequent failure to reverse a stampede of client funds has raised doubts that “new†means “better.â€
Credit Suisse lost an unprecedented 111 billion Swiss francs ($120 billion) worth of assets during the three final months of last year, most of which departed in the run up to the big strategy announcement. Yet the bank ultimately reported almost 30 billion francs more in outflows by the end of 2022, despite a frantic campaign to call tens of thousands of wealthy clients around the world.
Plans for the carved-out investment bank under ex-Credit Suisse board-member Michael Klein remain vague, and the outflow tide means the core wealth management business has a smaller base from which to earn profits. While the overhaul started in October is, on paper, a three-year process, results show the urgency of the situation facing Koerner and Chairman Axel Lehmann. It’s unlikely that investors will wait that long without results before demanding an even more radical solution.
“The bank really needs to focus on regaining trust now and continue with that initiative to reach out to all of their clients,†said Andreas Venditti, an analyst at Vontobel bank in Zurich.