Following a strategic review announced in October, Credit Suisse is now embarking on a three-year journey to restore trust. Now, it is about execution, said APAC chief executive Edwin Low in a conversation with finews.asia.
Despite unveiling a major overhaul in late October that included radical restructuring, Credit Suisse’s strategic review did not inspire much in terms of its share price, which continues to tumble lower.
«We can’t control the price movement of CS stock, but we are fully focused on executing our plan. We recognize that we have to restore trust in Credit Suisse, and we are fully committed and focused on driving forward the actions we have outlined,» said APAC CEO Edwin Low in a recent conversation with finews.asia.
«With a clear roadmap, we believe by delivering on our strategic actions, we will reach our targets for 2025. With focused execution, we believe we will see the positive impact on our performance over the coming three years. It is now all about the execution of our strategy.»
Wealth-First Boston Collaboration
Once a standalone unit, Asia no longer has the same level of autonomy. And following the latest restructuring and the creation of CS First Boston (CSFB), the previously arms’ length distance to the investment bank has also extended.
Nonetheless, Credit Suisse will retain its flagship «one bank» approach by leveraging investment banking capacities to serve its ultra-high net worth (UHNW) clients.
«In APAC, our new model will build on client collaboration between our leading wealth management franchise with the newly announced CSFB and complemented by strong product capabilities in asset management and markets,» Low explained. «Establishing an independent capital markets and advisory bank, CSFB will give our regional UHNW clients unparalleled access to ideas and solutions.»
China Focus
According to Credit Suisse research, the number of millionaires in APAC is expected to soar by 58 percent between 2021 and 2026, which fuels the bank’s ambitions to focus on the «newfound wealth of entrepreneurs in the region». And within Asia, China is a major target market for Credit Suisse.
«China is an enormous market, and China and Hong Kong are the biggest growth markets for us today and over the long term. Our longer-term goal is to have a locally incorporated bank that can offer a full range of wealth management services to onshore wealth management clients in China,» Low said.
«China will go through ups and downs, but we are fully committed to the country by taking a long-term view, knowing that its economic recovery may not be immediate.»
CSFB Process
As per its strategic review in October, Credit Suisse will spin off its capital markets and advisory business into the newly established CSFB while retaining its markets business which includes cross-asset product capabilities as well as equities, FX and rates market access.
«CS Investment Bank’s capital markets and advisory activities, following a transition period of around three years, will lead to the creation of CSFB,» Low said.
«Drawing on its rich heritage across advisory and capital markets, CSFB is expected to be more global and broader than boutiques, but more focused than bulge bracket players. The process to establish CSFB as an independent capital markets and advisory bank has started.»
