Instead of a decisive coup, the Swiss bank's new strategy is simply shifting emphasis from one area to another. The outcome is uncertain but the journey there is certain to be a grueling marathon, finews.asia writes.
Investors of Credit Suisse will have been astonished to see what their shares did on the day of third-quarter results and a keenly-awaited new strategy from ChairmanAntónio Horta-Osório – nothing at first, then tanked.
Clearly, shareholders are not particularly enthralled with Credit Suisse's figures nor its plans to invent itself. Those hoping for sweeping changes from Horta-Osório were disappointed.
Evolution Vs Big Bang
No word on spinning off its deeply-troubled asset management division, executive changes including those in top management. Analysts were equally restrained in their response: the strategy contains no surprises, most of them noted. Vontobel called the plans «evolution instead of big bang».
The path laid forward by Horta-Osório represents a shift of Credit Suisse's heft from one pillar to another: it will transfer $3.3 billion in capital to its business with wealthy clients, largely at the expense of its investment bank.
Crosstown Rivalry
Credit Suisse's shares might not move until the bank discloses who is to take over its flagship private bank. The board's failure to pin down the leadership of the unit, now united in a single 853 billion Swiss franc ($934 billion) operation, is a stain.
The bank's shares are the weakest performer on Switzerland's blue-chip index thus far this year, falling 13 percent and stuck below 10 francs. In comparison, UBS' shares have advanced by more than one-third since January to more than 17 francs.
