The Strategist

Credit Suisse announces major strategy review due to losses

07/27/2022 - 10:19

Ulrich K├Ârner, a specialist in asset management, has been named the new CEO of Credit Suisse. The Swiss bank, which is currently going through another round of management changes, has also announced a significant strategic review in an effort to move past a string of crises.

Ank Kumar
Ank Kumar
Pressure has been building on the current CEO, Thomas Gottstein, for months because of controversies and losses that occurred during his two years in office. These missteps have depressed the stock and enraged investors. Some investors have demanded Gottstein's replacement in recent months, but the bank objected. An adjustment to the plan would restrict investment banking activities even more.

Credit Suisse announced a Q2 loss of 1.59 billion Swiss francs ($1.65 billion), far exceeding market estimates.

According to the bank's own consensus prediction based on estimates from 19 analysts, it had anticipated a net loss of 206 million francs. Credit Suisse issued a quarterly loss warning back in June due to market volatility and sluggish customer cash inflows that were hurting its investment division.