Global markets have been roiled by U.K. voters' decision to leave the European Union. Chief Executive Tidjane Thiam sees an opportunity for Credit Suisse's private bank.
The British pound dropped dramatically, Switzerland's central bank has defended its currency against massive safe harbor inflows, and stock and bond markets around the world have been roiled by Britain's decision to leave the bloc.
«Markets have been impacted negatively by the results of the UK referendum. We expect this market volatility to stay with us for some time as the macroeconomic and political environment adjust to this new reality,» Thiam said in a statement provided to finews.ch.
Private Bank Opportunity
For private banks, this means major portfolio readjustments and panicked calls from clients about what to do with their investments. Credit Suisse's Tidjane Thiam sees an opportunity for the bank to cozy up to its wealthy clients.
«In these uncertain and volatile markets our clients need us most. This is an opportunity for us to stay close to our clients and to provide our expertise to them,» Thiam said.
Brexit Fillip?
Both Credit Suisse and UBS have cited geopolitical uncertainty in the past like Greece's potential exit from the European Union or a sprawling deficit crisis in the U.S. as factors which hold back client activity, which in turn hampers revenue from fees and commissions.
Thiam's comments don't indicate that wealthy clients plan a return to the market anytime soon. It remains to be seen whether Credit Suisse's foreign exchange trading arm gets a fillip from extreme currency volatility following the Brexit vote.
