The bank Credit Suisse is in a deep crisis. A strategy adjustment gives the important Swiss credit institution new self-confidence.
“We are focused on the daily work of winning back the trust of clients and shareholders.” With these words, the new Group CEO of Credit Suisse (CS), Ulrich Koerner, impressively commented on his approach to the “NZZ am Sonntag“.
The 60-year-old went on to say that he was also impressed by how committed his bank advisors were in their discussions with clients.
“That deserves real recognition,” he even breathed new courage into the workforce, despite a job cut.
Heart and soul for the bank
“The new Credit Suisse is one of the global leaders in wealth management and has a very strong position in the Swiss home market,” the new CS Group CEO also made clear. In addition to the loyalty of clients, shareholders and employees, he said, there was also a great deal of encouragement and heartfelt support for the systemically-important CS among numerous stakeholders.
However, at the same time, the exchange with clients is not always easy, he is aware, given the outflows of savings at CS, because of the austerity program, as well as because of the false reports about the financial institution.
“The bank’s reputation has suffered in recent years. Therefore, the focus for us is to regain credibility, step by step,” the top manager continued.
False reports pose a problem
Koerner also no longer wants to look back. “If you want to drive forward in a targeted manner, then you shouldn’t keep looking in the rear-view mirror,” he emphasized. What counts, he said, is leading the bank into a profitable future.
But what he wants to combat resolutely – and this is also shown by active communication – is misinformation. “Today, you can spread any allegations via social media at breakneck speed and across the board. For example, there was completely false speculation on Twitter about our capital base,” the CEO criticized.
This had led to uncertainty in the market.
Higher quality of equity
However, the new self-confidence is still evident in one point, as muula.ch found. According to the CS management, the capital increase does not go straight back into loss, as journalists suspected.
“That is not the right way to look at it,” Koerner explained in this regard. The value adjustment of the tax credit is rather related to the restructuring of the investment bank and in particular to the risk reduction in the area of securitized products.
This would immediately lead to a capital release of about the same size, the statement added. “Overall, this improves the quality of equity,” the CS CEO made clear.
Journalists without knowledge
The slump in the share price this week on the announcement of the new strategy also came as no surprise. But numerous media outlets speculated this week that this was a disapproval of the path taken.
“With a capital increase, the ownership share of existing shareholders is diluted,” Koerner said, explaining the normal consequence of such a transaction. But with the restructuring, management is shaping a much more stable bank, he emphasized confidently.