Credit score Suisse chairman pledges reform after ‘horrible’ 12 months By Reuters

By Pete Schroeder

WASHINGTON (Reuters) -Credit score Suisse’s chairman pledged on Friday to reform the financial institution after a “horrible” 2021 wherein it misplaced billions of {dollars}.

“We had final 12 months a horrible 12 months. We had the largest loss within the 166 years of the corporate,” Axel Lehmann mentioned. “We’re absolutely conscious that we have to change and we are going to change, clearly.”

Lehmann took over in January on the Swiss financial institution, which has been hit by a company spying scandal, funding fund closures, heavy losses and a string of lawsuits.

On Friday, he defended the group, which he mentioned was the main target of a lot hypothesis by journalists and others, saying that the financial institution’s capital base was robust.

“This 12 months we’re not producing capital as a result of we don’t make revenue,” he mentioned at an occasion organised by international banking physique, the Institute for Worldwide Finance.

Lehmann mentioned Credit score Suisse had a tier-one capital ratio (CET1) of 13.5% half manner by way of the 12 months and a “robust dedication that we’ll actually … someplace be between 13 and 14.”

Credit score Suisse is scheduled to launch particulars of a a lot anticipated strategic assessment alongside third-quarter outcomes on Oct. 27.

The financial institution is attempting to get well from a sequence of scandals, together with shedding greater than $5 billion from the collapse of funding agency Archegos final 12 months, when it additionally needed to droop shopper funds linked to defunct financier Greensill Capital.

To underpin sustainable revenue, Credit score Suisse is aiming to streamline its funding financial institution and develop its wealth administration enterprise, which soaks up much less capital.

Amid the choices the financial institution has mentioned it’s contemplating is discovering a purchaser for its securitised merchandise enterprise.

The extra the financial institution can increase by way of asset gross sales, the much less it could probably have to boost from traders. Some analysts say the financial institution might be left with a capital shortfall of as a lot as 9 billion Swiss francs.

Reuters has additionally reported that the financial institution may minimize round 5,000 jobs.