About Us Press Release
Credit Suisse Group expects to realize additional net income benefits of around CHF 1.0 billion in 2008 from the creation of an integrated global bank.
In 2008, Credit Suisse expects to generate total pre-tax synergy benefits of CHF 1.3 billion, including pre-tax cost savings of CHF 600 million and, subject to market conditions, gross revenue synergies of CHF 1.2 billion, offset by additional revenue-related pre-tax costs of CHF 520 million. This would result in a positive net income benefit of around CHF 1.0 billion. Overall cost savings are expected mainly in the areas of information technology, supply management and real estate and services. In 2007, cost savings after implementation costs, primarily relating to systems, branding, property and infrastructure associated with integrating the global bank structure, are expected to total around CHF 250 million pre-tax.
Over the past 12 months, Credit Suisse Group has been working to reorganize its current business units into three distinct areas: Investment Banking, Private Banking and Asset Management. A dedicated Shared Services area will deliver support services to these three divisions. The new integrated bank will be operational from January 1, 2006.
The integrated Credit Suisse
The integrated Credit Suisse will provide enhanced advisory services and products with a sharper focus on clients' needs. The integrated organization is expected to foster cooperation among businesses to capture both revenue growth and cost saving synergies. As announced, the integrated bank will adopt the brand name Credit Suisse and a new logo to unite its businesses beginning January 16, 2006. This will enable Credit Suisse to present one single face to the market around the world in all business areas.
Oswald J. Grübel, CEO of Credit Suisse Group, stated, "In Investment Banking, Private Banking and Asset Management, Credit Suisse has a tradition of creating innovative solutions for clients. Building an integrated bank and pooling expertise ensures that we will continue this tradition. Credit Suisse is committed to maintaining a reputation for thought leadership throughout the industry and to defining the marketplace of the future. This is the foundation from which Credit Suisse will grow in a rapidly changing environment."
The future of Winterthur
Credit Suisse Group will continue to manage Winterthur, its insurance business, as a financial investment. Winterthur will focus on enhancing profitability in preparation for a potential capital market transaction, as previously announced. The Group's intention is to maximize the value of this investment for its shareholders.