Audacity of hope

15 December 2020 By Liam Proud Follow @liamwardproud

CEO Thomas Gottstein will invest up to 200 mln Swiss francs in new initiatives to juice revenues in wealth management and investment banking. It’ll be hard to achieve that without taking more risk. At least he’s trying to buck the prevailing mood of declinism across the sector.

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Context News

Credit Suisse Chief Executive Thomas Gottstein on Dec. 15 unveiled new targets, including an ambition to grow pre-tax profit in the wealth management business at a 10% compound annual rate up to 2023. Achieving that will require fresh investments of between 100 million Swiss francs and 150 million francs next year, he said.

Gottstein will invest a further 50 million francs in new investment-banking initiatives as part of a plan to raise the unit’s return on regulatory capital to between 10% and 15%. He’ll also spend between 150 million francs and 200 million francs upgrading Credit Suisse’s computer systems and other back-office infrastructure.

The bank’s shares were up 0.6% to 11.19 francs at 0824 GMT - roughly the same rise as rival UBS, which had released no news on the day.

Context News

The bank’s shares were up 0.6% to 11.19 francs at 0824 GMT - roughly the same rise as rival UBS, which had released no news on the day.

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