The third quarter saw Credit Suisse Group post a loss of four billion Swiss francs (S$5.7 billion), falling short of the consensus expectation of 413 million francs calculated by the Swiss bank that presented its new transformation strategy on Thursday.
The bank has mandated measures including a targeted 50% reduction in consultancy spend and a 30% reduction in contractor spend with the benefits expected in 2023.
The group has also announced a plan to cut 5% of its workforce. The series of decisive actions announced are aimed at creating a simpler, more focused and more stable bank built around client needs. This will involve transforming the risk profile of the investment bank and targeting a reduction in RWAs of ~40%3 by 2025 through strategic actions across four areas.
Reduction of 5% of its workforce
The key cost transformation initiatives include non-core unit rundown and business descoping, organizational simplification, workforce management and third-party cost management.
The Swiss bank has already commenced the implementation of cost-reduction activities in the second half of 2022.
A headcount reduction of 2,700 full-time-equivalent employees (FTE), or 5% of the Group’s workforce, is already underway in 4Q22.
Credit Suisse expects to run the bank with ~43,000 full-time equivalent by the end of 2025 compared to ~52,000 at the end of 3Q22, reflecting natural attrition and targeted headcount reductions.
The group on Thursday also announced the appointment of Nita Patel as Chief Compliance Officer. She will join the executive board, effective November 1, 2022, reporting directly to group chief executive officer Ulrich Körner.
Nita Patel succeeds Rafael Lopez Lorenzo, who has decided to step down for family reasons.
In 2021, Nita Patel joined Credit Suisse from Goldman Sachs, where she spent 18 years in various senior Compliance roles across the Asset Management and Markets divisions.
Michael Klein will step down from the Board of Directors, which he joined in 2018, to act as advisor to Group CEO Ulrich Körner, helping launch CS First Boston. It is anticipated that he will be appointed CEO designate of CS First Boston, joining in 2023 and pending regulatory approvals.
Christian Meissner, who has served as CEO of the investment bank and member of the executive board, has decided to leave the bank, effective immediately.
Mike J. Ebert and Ken Pang are appointed co-heads of the markets business, effective from November 1, 2022. They will report directly to Group CEO Ulrich Körner. Ken Pang currently serves as co-head of global trading solutions and co-head of the investment bank for the Asia Pacific (APAC) region.
Louise Kitchen is appointed Head of CRU, effective November 1, 2022. She will report directly to Chief Financial Officer Dixit Joshi. Louise Kitchen most recently served as head of the capital release group and member of the group management committee at Deutsche Bank.
Ulrich Körner, Group CEO of Credit Suisse, said: “I am delighted to congratulate Michael, Mike and Ken on their respective appointments. At the same time, I would like to welcome Louise to Credit Suisse and thank David for his continued support.
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