About Us Press Release
Credit Suisse announces its Group strategy with a clear focus on strengthening, simplifying and investing for growth
Credit Suisse announces its Group strategy with a clear focus on strengthening and simplifying its integrated model and investing in sustainable growth, while placing risk management at the very core of the bank. Following a comprehensive assessment of its strategy, the Credit Suisse Group Board of Directors (BoD) has unanimously agreed on a long-term strategic direction for the Group. The strategy is based on a long-term vision and reemphasizes the integrated model, with a well-defined three-year plan, investing in sustainable growth across Credit Suisse’s businesses, while placing risk management and a culture that reinforces the importance of accountability and responsibility at its core. It has also approved the introduction of a global business and regional structure to align the organization with the strategy review and to reinforce cross-divisional collaboration and management oversight. Work in this direction has already begun as we strengthened our risk management and capitalization, and de-risked the bank while increasing the investment in our core businesses. Over the next three years, the bank aims to drive sustainable growth and economic profit driven by three key pillars:
- Strengthening its core by deploying CHF ~3 billion of capital to the Wealth Management division by 2024 and increasing the ratio of capital allocated to Wealth Management, the Swiss Bank and Asset Management versus the Investment Bank from ~1.5x in 2020 to ~2.0x in 2022.
- Simplifying its operating model with a clear matrix organization of global businesses and regions, and a unified, global Wealth Management division, a global Investment Bank, and a central Technology and Operations function, which, together with other measures, is expected to generate structural cost savings to invest for growth.
- Investing for growth with incremental investments progressively increasing from 2022 to 2024 to approximately CHF 1 – 1.5 billion p.a. in all four divisions, namely in our leading global Wealth Management business; global Investment Bank focused on advisory and solutions; leading Swiss universal banking franchise; as well as multi-specialist Asset Manager.
António Horta-Osório, Chairman of the Board of Directors, said: “Over the past months, the Board of Directors and the Executive Board have been working together relentlessly on shaping the strategy that will serve as our compass going forward. The measures announced today provide the framework for a much stronger, more client-centric bank with leading businesses and regional franchises. Risk management will be at the core of our actions, helping to foster a culture that reinforces the importance of accountability and responsibility. We will invest to grow our topline by shifting approximately CHF 3 billion of capital to our wealth management business and through additional technology and other investments amounting to around CHF 1 to 1.5 billion per year by 2024, funded by expected BAU cost savings. This should enable us to achieve sustainable growth together with substantially lower risk and to deliver lasting value for all our key stakeholders – clients, investors, colleagues and society. With our 165-year heritage of superior client service and integrated approach, Credit Suisse is well positioned to build on the strengths of its great people and operating businesses.”
Thomas Gottstein, Group CEO, said: “With this strategic review, we have determined a clear and compelling way forward, building on existing strengths and accelerating growth in key strategic business areas. We will become a more streamlined bank, with expected lower volatility of earnings and with a sharper focus on the markets we operate in. We have the ambition to further strengthen our position as a global leader in wealth management and we will make further investments in areas where we have competitive advantages within our more focused and more capital-light Investment Bank, our leading and client-centric bank in Switzerland as well as our multi-specialist Asset Manager. I am confident that with the measures we announced today, we will be better positioned to leverage our strengths, control our risks and further build connectivity with the Wealth Management division, bringing the whole of our bank to all our private, corporate and institutional clients around the world.”