Credit Suisse boss Tidjane Thiam has unveiled the Swiss bank's next move, signaling that the end of a painful three-year restructuring to axe billions from its spending and cut thousands of jobs is within grasp.
Employees at Zurich-based Credit Suisse got a sign from their boss, Chief Executive Tidjane Thiam, that the end of two years of restructuring to slim its investment banking arm, bolster its capital cushion by tapping shareholders, and slashing costs by cutting jobs may be nearing an end, according to a «Bloomberg» report.
Thiam told staff in a memo that he and his lieutenants such as influential operating chief Pierre-Olivier Bouee have begun drawing up a blueprint to take the bank from next year into 2020, after bringing an annual August strategy pow-wow forward by two months this year.
Earning Profits
The news agency reported little of substance from Thiam's missive, besides that Credit Suisse – which has been battling several crises since the CEO took the helm two years ago – plans to direct its attention back to the business of earning money.
«Looking beyond 2018 we agreed there would continue to be significant value creation opportunities available to a restructured Credit Suisse,» Thiam told staff. This in turn should lift slumping Credit Suisse shares, he said.
«That would translate into a growing valuation of Credit Suisse as we continue to allocate more capital towards businesses that will generate higher returns and are more capital efficient.»
Reassure Staff
The comments show that Thiam, who successfully raised 4 billion Swiss francs in May, feels confident enough to reassure employees, who have presumably born the brunt of the turmoil.
«With the progress achieved to date, we believe we are on track to deliver on our strategic ambitions,» he told employees in the memo.
The bank's priorities now include «disciplined capital management» and further capital efficiency – in other words, not wasting the 4 billion francs and stowing enough funds to pay a dividend yield commensurate to its peers, as promised in May.
