Credit Suisse CEO says capital plans meet new Swiss leverage rules

To accomplish that, the bank said on Wednesday that it would raise more than CHF6 billion ($6.3 billion) in capital by selling stock and cutting CHF3.5 billion in costs, including 1,600 Swiss jobs, by the end of 2018.

With Credit Suisse showing its strength in Asia over recent years, its decision to increase its focus in the region will be an important source of value in the future.

Credit Suisse is the third biggest private bank in Asia after UBS and Citigroup, according to rankings published by Asian Private Banker.

Credit Suisse will fund growth in Asia and other emerging markets by freeing up capital now tied up in less attractive businesses. This presents a solid downside to the current price of the equity.

Credit Suisse (NYSE:CS) was downgraded by equities researchers at Bankhaus Lampe to a “sell” rating in a note issued to investors on Thursday, AnalystRatingsNetwork.com reports.

He added that while the figures suggested Credit Suisse could make a return on tangible equity of 14 per cent, achieving that was “dependent on Credit Suisse turning around a recent poor earnings performance”. A few of the banks most senior executives departed in a management overhaul including Colin Fan, the co- head of the investment banking and trading unit.

This is an attempt to “right-size” the investment bank so that it mainly provides services to wealth management.

Credit Suisse declined to comment ahead of the October. 21 strategy update when the bank will also present its third-quarter results. 50 consensus estimate, a 122.00% surprise.

This growing opportunity for banking means Sitohang will be deploying more resources in China. Our focus is on being a partner to our High Net Worth Individual, Entrepreneur and Institutional clients and supporting them in their growth ambitions.

In the Philippines, Credit Suisse has been a leading financial adviser to the government and major corporations since 1992, providing financing and advisory services spanning capital raising, liability management, M&A transactions and structured finance.

That is not only a response to tougher regulations for investment banking. UBS announced a reorientation towards private banking with Barclays following suite. However Deutsche Bank and Credit Suisse remained on their previous course. The bank was also the sole financial adviser to Alsons Prime Investments Corp. on its A$361-million acquisition of Indophil Resources in January. Vontobel analyst Andreas Venditti, commenting on the Credit Suisse cuts, said: “This is far away from what UBS did”.

While his multi-year plan, presented in London on Wednesday, contained few big surprises, the capital call and prospect of a lower dividend discouraged investors, who also questioned how Thiam will meet his goals.