Credit Suisse Group AG has announced a set of key initiatives today. These initiatives are aimed to drive efficiencies up, improve overall effectiveness, as well as capture future opportunities for growth.
Major Initiatives Planned
The list of major changes will come into effect as of the 1st of August, 2020. One of the highlights of these initiatives is the creation of a global Investment Bank, or IB. This IB will see to the building of a client-centric global platform for critical scale, and will be for institutional, corporate, as well as entrepreneurial clients. Alongside this, the initiatives will see the integrations of Investment Banking & Capital Markets, Global Markets, as well as APAC Markets.
Alongside this, these initiatives will see to the creation of Global Trading Solutions (GTS), as well as an Equities platform with global integration. The GTS, in particular, will combine APAC Solutions with the International Trading Solutions of Credit Suisse. This comes in a bid to maximize the wholesale business Credit Suisse has with entrepreneurial, institutional, as well as corporate clients. These initiatives stand ready for further integration of global technology, the delivery of a wide array of products, a unified risk set-up, as well as better pricing and scale for its respective customers.
Changes Across The Board
In order to help facilitate this, Credit Suisse will see the establishment of a combined Chief Risk and Compliance Officer (CRCO). This will allow the company to create alignment across its various control functions.
With all these new initiatives, Credit Suisse told the public that a change within the company’s executive leadership team is mandated. On the 29th of July, 2020, the Board of Directors successfully affirmed the amended roles of Lara warner and Brian Chen within the Executive Board. Alongside this, the Board affirmed Lydie Hudson’s new role within the company, as well.
With these changes coming into effect, David Miller will step down from the Executive Board, as a result. However, it should be noted that Miller has committed to continuing his career at Credit Suisse.
Plans For A Dividend Payout In The Works
Alongside this, Credit Suisse had reconfirmed and/or otherwise updated a series of financial ambitions. For the medium term, the company is targeting Return on Tangible Equity at 10 to 12%, with the GET1 ratio planned to be about 12% as well.
Alongside this, the Board of Directors is intent on proposing a payout for the 2019 dividend’s second half. Of course, this stands subject to the approval of the shareholders of Credit Suisse. The shareholders will be able to cote on this on the 27th of November, 2020, when another Extraordinary General Meeting (EGM) will be held. Should the EGM give approval, it still stands subject to economic and market conditions, with the Board of Directors intent on reviewing a share buyback program, as well.