Credit Suisse aims for stronger franchise from global review

The emblem of Swiss financial institution Credit score Suisse is seen at an workplace constructing in Zurich, Switzerland September 2, 2022. REUTERS/Arnd Wiegmann

HONG KONG, Sept 24 (Reuters) – Credit score Suisse’s (CSGN.S) prime two executives have informed workers the financial institution is working to ascertain a stronger franchise in the long term, based on a memo seen by Reuters on Saturday, amid uncertainty over a world evaluation of its operations.

The memo despatched by Chairman Axel Lehmann and Chief Government Ulrich Koerner stated a “heightened stage of media and market hypothesis” concerning the evaluation had raised questions among the many financial institution’s workers and shoppers.

Reuters reported on Thursday that Credit score Suisse had sounded out buyers a couple of attainable capital elevating because it makes an attempt a radical overhaul of its funding financial institution.

Koerner was appointed chief government in late July and ordered a evaluation of the financial institution’s operations, the second of its sort in two years.

“Once we launched our strategic evaluation, we dedicated to an bold timeline while additionally making it clear that we’d perform a rigorous and diligent analysis of all choices for Credit score Suisse,” the observe stated.

“We wish to set up a transparent path for the financial institution that may strengthen our franchise for the long run. This course of requires time and a major effort from many components of the group.”

A Credit score Suisse spokesperson confirmed the contents of the memo.

Varied situations are below dialogue for the funding financial institution, together with essentially the most drastic choice of largely exiting the U.S. market, two sources stated. A financial institution spokesman stated “Credit score Suisse will not be exiting the U.S. market.”

The evaluation’s findings might be revealed on Oct. 27 when the financial institution releases its third-quarter earnings, stated the memo, first revealed by Bloomberg Information earlier on Saturday.

Reporting by Scott Murdoch; Modifying by David Holmes

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