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Bloomberg
Credit Suisse Group is shifting resources to win business from high-net-worth clients as the lender focuses more heavily on wealth management amid cuts to its troubled investment bank.
The Swiss bank is reassigning advisers to its dedicated Private Banking International unit, led by Raffael Gasser, according to an internal memo seen by Bloomberg. The aim is to expand Credit Suisse’s coverage of global high-net-worth clients.
As many as one third of the relationship managers in Switzerland that don’t currently sit under PBI will be reassigned there, according to a person familiar with the matter. A stronger push in wealth management may involve broadening the definition of clients potentially covered under high-net-worth, and seeking part of a broader pool of the globally affluent. The changes will take place gradually over the next few months, the person said.
After multiple quarters of poor results and turmoil, new Credit Suisse Chief Executive Officer Ulrich Koerner is working on the second strategy revamp in a year and taking tougher action with the loss-making investment bank. The lender has hired Dixit Joshi, former Deutsche Bank AG treasurer as chief final officer, and elevated Francesca McDonagh to operating chief, in the first big leadership reshuffle under
Koerner.
Credit Suisse said it will provide a restructuring plan for the investment bank by November, when it reports third-quarter results. One option being discussed is that the investment bank may cease to exist as a separate unit, Bloomberg reported this week. Late last year Credit Suisse outlined a group-wide strategy consisting of shrinking the investment bank and shifting about $3 billion of capital to the wealth management unit.