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Start Of Work On 2018-2020 Plan Flagged By Credit Suisse CEO


07/19/2017


Start Of Work On 2018-2020 Plan Flagged By Credit Suisse CEO
Beyond its present state of targets, Credit Suisse begins work this month on planning for its other strategic priorities, Chief Executive Tidjane Thiam said in a memo to staff, according to news reports in the local media.
 
While Thiam told the staff of the organization that preparation will start in July on its 2018-2020 plan, Credit Suisse aims to achieve its current capital, cost and pre-tax income targets by 2018.
 
Following a two-day annual strategy break at the end of June attended by the board of directors and executive board, the memo was sent to the staff of the organization by Thiam who took over as CEO just over two years ago.
 
"Looking beyond 2018, we agreed there would continue to be significant value creation opportunities available to a restructured Credit Suisse, and that would translate into a growing valuation of Credit Suisse as we continue to allocate more capital towards businesses that will generate higher returns and are more capital efficient," Thiam said in the memo which was sent to staff as seen and reported by various media earlier this week.
 
"Over time, this will increase the size and proportion of our capital allocated to businesses which attract a higher market multiple, driving our valuation higher", said he internal memo.
 
The contents of the memo were later confirmed by Credit Suisse to the media.
 
This year the board of the company decided to hold the strategy away day earlier "so that its conclusions could inform the preparation of the 2018-2020 plan, which kicks off in July", Thiam said even though the board normally holds it at the end of August.
 
Thiam has refocused Credit Suisse to look to make wealth management and private banking its core business and move away from investment banking, ever since he joined the organization from UK insurer Prudential in mid-2015.
 
He has raised around 10 billion Swiss francs ($10.4 billion) in fresh capital and has also cut costs by several billion dollars.
 
"With the progress achieved to date, we believe we are on track to deliver on our strategic ambitions," Thiam said.
 
Credit Suisse's share price is down by around a third with the bank posting a 2.7 billion franc loss last year ever since Thiam laid out his strategy blue-print in October 2015.
 
And noting its highest quarterly profit since the restructuring, Credit Suisse reported net profit of 596 million francs for the first quarter of 2017.
 
Second-quarter results would be reported on July 28 by Zurich-based Credit Suisse, Switzerland's second-biggest bank after UBS.
 
(Source:www.reuters.com)