The 166-year-old entity has been mired in rumors of takeover bids and concerns over its sustainability
Any dealer now hoping to close down Credit Suisse Group AG as the lender's reforms have pushed its stock down may still find itself short turnaround in Zurich.
"We're going to be flourishing again, so we don't have any acquisition discussions," Credit Suisse chairman Axel Lehmann said in an interview with Bloomberg Television in Hong Kong on Monday. "We want to be free."
With its share price down more than half this year, the 166-year-old entity has been vulnerable to rumors of takeover bids and concerns over its stability. Lehmann said the capital increase of 4 billion Swiss francs ($4 billion) would make the lender "rock solid", allowing it to undertake a significant restructuring that radically decimated the loss-making investment bank and undermines its business operations.
"Going forward, Credit Suisse is truly a wealth management-focused franchise, centered around entrepreneurs, wealthy customers," Lehman said, adding that the bank plans to expand its growth efforts in Latin America, Asia Pacific and the Middle East markets. is to be carried forward. We are a wealth manager, and asset management goes hand in hand."
The executive said he is "highly confident" that Credit Suisse can secure a settlement next week regarding the sale of the majority of a securitized-products trading business to a group led by private equity firm Apollo Global Management Inc. The bank plans to maintain a stream of revenue from the business, Lehman said.
On Monday, the bank detailed plans to raise capital through a rights issue and sell shares to investors including Saudi National Bank, which is set to become one of the lender's top shareholders. To aid in this process, the company announced a wide syndicate of banks that include Wall Street names such as Goldman Sachs Group Inc., European lenders such as BNP Paribas SA and Barclays plc, as well as firms in Asia.
Lehmann said about 1.8 billion Swiss francs are committed by several anchor investors, while the rest of the rights issue is completely underwritten.
Lehmann, 63, is a Swiss insider who spent nearly two decades at Zurich Insurance before a stint at UBS Group AG. Since joining Credit Suisse's board of directors in late 2021, he has brought in a more modest style of handling the bank's difficulties. He took the role of president in January, pledging to end "grand declarations and promises" in favor of "humility and consistent execution".
Credit Suisse's strategy reform last month was the second within a year, after the previous management pair of Antonio Horta-Osorio and Thomas Gottstein failed to contain losses and convince investors that the bank was on the right track.
Bloomberg reported Monday that following the capital increase announcement, Lehman himself has purchased $1 million worth of shares to demonstrate confidence in the bank's strategy.
Credit Suisse is also introducing an initial headcount reduction of 2,700 positions in the fourth quarter, and will eventually reduce the workforce by about 17%, or about 9,000 roles. Lehman declined to say which sectors would be most affected by the job cuts.
Lehman shrugged off questions as to whether accepting investments from the Saudi Arabian lender, which is 37% owned by the kingdom's sovereign wealth fund, was a sign of the U.S. on its human rights track record. and would attract the displeasure of Swiss governments.
“We are very happy that we have an investor like Saudi National Bank. This is a private institution, and I think this is also an area that is growing.” Lehman was also bullish on the growth prospects for the Asia-Pacific region, and any suggestions the lender was considering reducing its commitment. China, in view of the slowdown in the country's growth and geopolitical concerns.
money flow
"I think there's really underlying growth in this area," Lehmann said, adding that the firm carefully monitors geopolitical tensions. “Hong Kong will continue to play a major role as a global financial hub – we are and we will remain committed to it.”
Deutsche Bank AG chief executive Christian Seich warned in a September speech that rising tensions between China and the US posed significant risks to Germany. He urged German companies to reduce their reliance on China, but warned that the move would require a "fundamental change no less than the separation from Russian energy."
The bank's money-management arm has now stabilized after Lehman called a "social-media storm," prompting some investors to pull cash from the bank. "I hope we will have more flows in the coming weeks and months," he said. Told. "We have a lot of customers who told us they would come back."
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