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According to Reuters , Credit Suisse (NYSE: CS, stock price of US$5.22, market value of US$13.34 billion, hereinafter referred to as Credit Suisse ) announced on Wednesday that it will appoint asset management expert Ulrich Körner as the new CEO. This is also the latest personnel change of Credit Suisse. At present, the bank is struggling to recover from a series of scandals and announced that it will conduct a strategic assessment.
Incumbent CEO Thomas Gottstein has faced increasing pressure over the past few months due to scandals at the bank and the growing losses over his two-year term. These events hit Credit Suisse's share price hard and angered investors. Data shows that as of the close of Wednesday, July 26, Credit Suisse's U.S. stock price has fallen by 61.6% from its all-time high set on February 25, 2021.
Gotstein has served as the CEO of Credit Suisse on February 14, 2020. During his tenure, Credit Suisse encountered major events including the liquidation of its customers Greensill Capital and Archegos Capital Management in early 2021.
In addition to two liquidation incidents, according to the " Wall Street Journal ", was found guilty of just a month ago in a money laundering case related to the cocaine gang. The Swiss Federal Criminal Court ruled on June 27 that Credit Suisse Group and one of its former employees were guilty of helping Bulgarian criminal gangs clear funds related to cocaine trafficking.
The court ruled that Credit Suisse did not take enough measures to avoid money laundering of members of the criminal gang, prosecutors said the criminal gang had shipped tons of cocaine to Europe and laundered millions of dollars through Credit Suisse. The court imposed a fine of about $2.1 million on Credit Suisse and ordered Credit Suisse to pay approximately $20 million to the Swiss government.
Credits new CEO Kornar (Picture source: Credit Suisse official website)
Credits official website information shows that the new CEO Kornar was born in 1962 and has dual nationality Swiss and German . Korner received his Ph.D. in economics from the University of St. Gallen, Switzerland in 1998. In fact, Korner worked at Credit Suisse from 1998 to 2009, and served as CFO and CEO of Credit Suisse's Swiss business. After resigning from Credit Suisse in 2009, Kornar joined UBS (UBS), and served as CEO of UBS Asset Management Department and a member of the Executive Committee of UBS Group. Kearner did not return to Credit Suisse until last year and has been CEO of Credit Suisse Asset Management.
" Daily Economic News " reporter noticed that while announcing the new CEO, Credit Suisse announced its second quarter financial report. According to the financial report, Credit Suisse's net revenue in the second quarter was 3.65 billion Swiss francs , a month-on-month decrease of 17% and a year-on-year decrease of 29%; 's net loss in the second quarter was 1.59 billion cherry francs, an expansion from the first quarter's net loss of 273 million cherry francs, and analysts expected a loss of 206 million cherry francs, and a net profit of 253 million cherry francs in the same period last year. Credit Suisse's revenue in the first half of this year was 8.06 billion Swiss francs, a year-on-year decrease of 36%. 's loss in the second quarter was also the third consecutive quarter of Credit Suisse's loss.
In addition, Credit Suisse announced that it is conducting a comprehensive strategic review to reduce the group's absolute cost base to below CHF 15.5 billion in the medium term.
Gotstein said in a statement: "Our second quarter 2022 results were disappointing, especially in investment banks, and were affected by higher litigation clauses and other adjustments. In addition, overall performance was severely affected by a range of external factors, including geopolitical, macroeconomic and market factors."
"The urgency of taking decisive action is obvious, and we are conducting a comprehensive strategic review to strengthen our focus on wealth management, Swiss Bank and asset management businesses and support the transformation of our investment banking," Gotstein added.
In fact, as early as early June this year, Credit Suisse issued a profit warning, saying that due to the conflict between Russia and Ukraine and tightening monetary policies, the bank may suffer losses in the second quarter due to the intensified market volatility, the decrease in customers and the continued deleveraging of to ; Credit Suisse also stated that its goal is to accelerate the cost-saving plan introduced during the restructuring in November last year.What should be pointed out by is that this is the sixth time that Credit Suisse has issued a profit warning in seven quarters.
Daily Economic News
Daily Economic News
Daily Economic News
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