It’s expected that Credit Suisse Group will soon announce the merger of its capital markets unit and its investment banking unit, as well as its risk and compliance units. This will effectively reverse the splits the banking group had made just five years prior.
Trying To Make The Best Of Things
The Straits Times reported it first on Wednesday, stated that the Group’s CEO, Thomas Gottstein, is aiming to tighten the control he has over it. The idea is that greater control will see a greater boost in performance for the investment bank. It’s expected that the official announcement will be made by Thursday from the bank, alongside the publication of its quarterly reports.
The banking group’s investment bank unit has seen losses throughout the past few quarters. The aim of the merger is to, in turn, increase the profitability of the unit. Alongside this, it could also help overhaul Credit Suisse’s reputation, as it had a few scandals associated with the company in recent times.
Complying With Trends
In a statement made by the Switzerland-based banking group, they assured the public that their strategy is working. They highlighted the fact that they serve as a global, leading wealth manager with strong capabilities of investment banking. The bank stated that they consider a wide array of options to find ways to improve their clients’ services, doing so on an ongoing basis. The overarching aim of this is to achieve the goals of the banking group, doing so in a profitable, legally compliant way. As such, the banking group stated that there is constant communication between their investors on these subjects.
It was back in February when Gottstein took charge of the investment bank, and has considered a merger of its units since then. Overall, many companies do the contrary within the investment bank sector. Morgan Stanley’s CEO oversees both the capital markets and the investment banking units, with Goldman Sachs running each independently.
Making Success From Failure
It’s also said that the restructuring of Credit Suisse will be a win-win move for the capital markets division. This includes Brian Chin, who’s the head of this division. The capital markets unit has been reporting poorly before Chin took the helm, and now stands as a key profit contributor to Credit Suisse.
Alongside this, Credit Suisse is taking a keen interest within its Chinese business. Recently, the banking group became a majority stakeholder within a Chinese joint venture. On top of this, the company made a series of senior appointments within the Chinese division.