Credit Suisse announces a comprehensive strategy review

August 2022

Credit Suisse Group AG (Credit Suisse) today announced the appointment of Ulrich Körner as Group Chief Executive Officer, effective August 1, 2022. He replaces Thomas Gottstein, who is stepping down. At the same time, the bank announced that it is conducting a comprehensive strategic review with the following objectives:

  • Alternatives beyond the results of last year's strategy review should be considered, particularly given the changed economic and market environment. The goal of the review is to create a more focused, agile group with a significantly lower absolute cost base that can deliver sustainable returns to all stakeholders and provide superior service to clients.
  • The first-class global wealth management business, the leading universal bank in Switzerland and the asset management business with multiple specializations are to be strengthened.
  • Transformation of the Investment Bank into a capital-light, advisory-oriented banking business and a more focused market business, complementing the growth of wealth management and Swiss Bank.
  • Review of strategic options for the Securitized Products business, which may include injecting debt capital into this market-leading, high-yield platform to realize untapped growth opportunities and free up additional resources for the bank's growth areas.
  • The Group's absolute cost base is to be reduced to below CHF 15.5 billion in the medium term, in part through a bank-wide digital transformation that prudently ensures lasting savings while maintaining focus on improving risk management and risk culture.

Credit Suisse will provide more detailed information on the progress of the strategy review, including specific targets, upon the release of its third quarter 2022 results.

Axel P. Lehmann, Chairman of the Board of Directors of Credit Suisse, said: "I am delighted to welcome Ueli as our new Group CEO to oversee the comprehensive strategic review at such a pivotal moment for Credit Suisse. With in-depth industry knowledge and an impressive track record, Ueli will help drive our strategic and operational transformation, building on existing strengths and accelerating growth in key business areas. Ever since I took over as Chairman of the Board and was able to review our bank with the renewed Board of Directors, I have come to appreciate the first-class quality of our business areas. But we need to be more flexible to ensure they have the resources necessary to remain competitive. Our goal must be to become a stronger, simpler and more efficient group with more sustainable earnings. I would like to take this opportunity to thank Thomas for his great commitment to Credit Suisse over the past 20 years, especially as Group CEO. He has put in tremendous effort and served our clients in Switzerland and internationally with great integrity and entrepreneurial spirit. I wish him all the best for the future."

Thomas Gottstein, outgoing CEO of Credit Suisse, said: “It has been a great honor and privilege to serve Credit Suisse over the past 23 years. The bank has impressive capabilities across all four divisions and an immense talent pool of more than 50,000 colleagues worldwide. Despite the challenges of the past two years, I am very proud of what we have achieved since I joined the Executive Board seven years ago and more recently in strengthening the bank, targeting high caliber executive recruitment and improving our risk culture. In the last few weeks, after discussions with Axel and my family and for private and health reasons, I have come to the conclusion that it is the right time to step down and to place the further phase with the decisive measures announced today in the hands of a successor. »

Ulrich Körner, new CEO of Credit Suisse, says: "I would like to thank the Board of Directors for the trust they placed in me at the beginning of this fundamental transformation. I look forward to working with all my colleagues in the bank and on the Executive Board and to devoting my full energy to the implementation of our transformation. This is a challenging undertaking, but at the same time a great opportunity to position the bank for a successful future and to realize its full potential. I would also like to thank Thomas for his support and partnership.»

Ulrich Körner has been a member of the Executive Board and CEO of Asset Management since April 2021. He came from UBS Group, where he was a member of the Executive Committee for 11 years, including six years as Head of Asset Management. Prior to that, he served as Chief Operating Officer. Since 2011 he has also headed the Europe, Middle East and Africa region for UBS. Before joining UBS, he held senior positions at Credit Suisse, including Chief Financial Officer and Chief Operating Officer of Credit Suisse Financial Services and CEO of the Switzerland region. Ulrich Körner holds a PdD in Business Administration from the University of St. Gallen (HSG).

Expansion of the leading position in wealth management and in the Swiss universal bank
Strong global wealth management, the universal bank in Switzerland and asset management form the roots of Credit Suisse. Strengthening these positions is a priority in the strategy review. At the same time, options for a fundamental transformation of the investment bank into a highly competitive banking division and a more sustainable markets division to complement wealth management and Swiss Bank are being examined.

In wealth management, Credit Suisse aims to expand its leading position in Switzerland, EMEA, parts of the Americas and APAC. In doing so, it can capitalize on its strengths in the ultra high net worth segment while accelerating core high net worth growth to drive recurring revenue, underpinned by a unified global platform. The bank's leadership position in Switzerland will be further strengthened by expanding "high-touch" capabilities in relation to wealth management, corporate and institutional clients, as well as accelerating "high-tech" activities through the CSX offering.

strategy review in relation to the Investment Bank; Review of strategic options for securitized products
The Board of Directors and senior management of Credit Suisse are convinced that the strategy review must essentially ensure that a less capital-intensive, advisory-oriented Banking division and a more focused Markets division are created. This complements the growth of the wealth management business and Swiss Bank and the strategic goals can be better met. In addition, the aim is to continue providing first-class services to customers and achieve more consistent performance.

The Bank will review various strategic options to continue the growth of our market-leading Securitized Products platform and associated financing business. It is a highly profitable global business with approximately USD 20 billion in risk-weighted assets and approximately USD 75 billion in leveraged exposure. It offers significant untapped growth opportunities that may be leveraged through raising leverage can become. This, in turn, would free up additional resources that could be invested in Credit Suisse's growth areas. Credit Suisse will continue to provide full support to clients in the Securitized Products area.

The Investment Bank's leadership is strengthened with the appointment of David Miller and Michael Ebert as Co-Heads of Banking and Markets, respectively. Christian Meissner, CEO of the Investment Bank, will focus on the ongoing strategic transformation of the business.

The development and implementation of the new strategy will be overseen by the full Board, supported by an ad hoc committee chaired by the Board, the Investment Bank Strategy Committee. Michael Klein chairs and other members are Mirko Bianchi, Richard Meddings and Blythe Masters.

Reduction of absolute cost base to below CHF 15.5 billion; further promotion of risk management culture
The Board of Directors and the Executive Board of Credit Suisse have launched a program to reduce the Group's absolute cost base to below CHF 15.5 billion in the medium term given the difficult economic and market environment. This builds on the Bank's commitments made at the Investor Deep Dive in June: to deliver significant savings in the Technology & Operations function to improve scalability and ensure the long-term sustainability of these efficiencies, while continuing to drive digital transformation and maintaining a robust risk culture of the group is further optimized.

Axel P. Lehmann says: «With this in-depth strategy review, we are setting clear priorities for the future of the company. We want to create lasting values by looking after our customers with care, commitment and entrepreneurial spirit. As we execute on our strategy review, our transformation and culture change will return Credit Suisse to its pre-eminent position as the bank for entrepreneurs in global finance."

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