Credit Suisse revamps Swiss unit to lure retail, young clients

0
265


Switzerland’s national flag flies beside a logo of Swiss bank Credit Suisse at its headquarters at the Paradeplatz square in Zurich, July 31, 2019. REUTERS/Arnd Wiegmann

ZURICH (Reuters) – Credit Suisse (CSGN.S) will invest hundreds of millions of francs in its Swiss division by the end of 2021, the country’s second-biggest bank said on Monday, as it creates a new business area, Direct Banking, for retail and commercial clients.

Investments “in the high three-digit million range” through 2021 will include boosting its Swiss Universal Bank’s (SUB) digital offering, hiring client advisers, marketing and sponsorships, Credit Suisse said in a statement.

Credit Suisse, which in 2015 had planned a partial IPO for the Swiss unit but later opted for a rights offering to raise money, is creating the Direct Banking business area starting Sept. 1 for retail and commercial clients who use core banking products.

The new business area will have about one million retail clients, 60,000 commercial clients, and more than 500 employees and will be run by Mario Crameri.

“Credit Suisse’s market share tends to be lower in Swiss retail banking and among young bank clients than in most other client segments,” it said.

“Against this backdrop, Credit Suisse has decided to adjust the business model of its Swiss division and to make substantial investments.”

The Swiss division is sticking with financial targets communicated at Credit Suisse’s 2018 investor day: above-market growth in revenue and client business volume, a cost-to-income ratio of less than 60%, further profitable growth over the medium term and a return on regulatory capital of more than 18%.

Reporting by John Miller; Editing by Thomas Seythal and Sonali Paul



Source : Reuters