The surprise departure of the head of Credit Suisse in Singapore is a worrying sign that the major Swiss bank is facing an exodus almost everywhere in the world. This makes turning the troubled lender around all the more difficult, an analysis by finews.asia shows.

Hardly a week goes by without Credit Suisse having to announce high-ranking departures, with the brain drain making it all the more difficult for the bank's management to achieve a turnaround.

Moreover, the thinning of the ranks of top people doesn't create a good environment for bringing back client money that flowed out of the bank's wealth management business in abundance last year.

A Vicious Circle

The latest bad news is the resignation of Chien Chien Wong, CEO of Credit Suisse in Singapore, according to an internal memo seen by finews.asia. Wong joined Credit Suisse First Boston in 1992 and subsequently held various management positions in New York, Hong Kong, and Singapore.

The city-state is often regarded as the «Switzerland of Asia». As a financial center, it has been one of, if not the, most important port of call for most wealthy families in the region for decades. Credit Suisse is the second largest wealth manager in Asia behind UBS, making the situation in which Credit Suisse now finds itself all the more threatening.

Wong's resignation is just the tip of the iceberg. Along with globally imposed job cuts, long-standing and highly proven managers have been leaving the bank for months. In October, Jin Yee Young, a long-serving deputy of Asian wealth management chief Benjamin Cavalli, moved to Deutsche Bank, as reported by finews.asia.

Deutsche Bank Poaches

It is not without a certain irony that Deutsche Bank has former Credit Suisse executive Claudio de Sanctis as its wealth management chief who lived and worked in Asia for many years. Deutsche Bank seemingly has no qualms about poaching from a weakened Credit Suisse at the moment, as was evident last week. Long-time Credit Suisse private banker and regional manager Johanes Oeni is pitching his tent at Deutsche Bank where he will report to Jin Yee Young.

Last week, Deutsche Bank announced it recruited Stella Lau, previously responsible for the China market at Credit Suisse in Singapore.

Regaining Lost Funds

These are merely the most prominent cases and the exodus isn't limited to Singapore or wealth management. There have been high-profile departures in Hong Kong as well.  Recently, Greater China head and investment banker Carsten Stoehr left Credit Suisse and was followed by Zeth Hung, previously Vice Chairman of APAC investment banking & capital markets (IBCM), after 25 years at the institution.

Should the resignations continue apace in the coming weeks and months, even Credit Suisse's best strategy is likely to fail. Trust is not only important in dealing with employees, but also among customers, where only proven and motivated people can turn the tide. It is precisely to recapture lost treasure and new money, that experienced «treasure hunters» are needed. These are currently lacking and will probably continue to do so for a while since it is hardly desirable to switch to Credit Suisse at the moment.

The Waiting Room

Another indication of how Credit Suisse will fare in Asia in the coming months is the appointment of Helman Sitohang who joined the bank 25 years ago, where he had a career in investment banking and was seen as an integral figure in Asia. When the division became an independent division within the group in 2014 under then-CEO Tidjane Thiam, Sitohang was appointed to head it. 

He was replaced by Edwin Low as head of Asia in April of last year and currently serves «merely» as senior advisor to the Group CEO at Credit Suisse. Such roles are often seen as a waiting room for the next career move outside the company. It's not surprising that speculation about Sitohang's future is mounting.