Credit Suisse to merge investment banking units, posts Q2 profit hike

ZURICH (REUTERS) – Credit Suisse said it was wrapping its global markets and investment banking divisions into a single unit, as chief executive Thomas Gottstein puts his first major strategic stamp on the bank.

Switzerland’s second-biggest bank also posted a 24 per cent rise in second-quarter net profit to 1.16 billion Swiss francs (S$1.75 billion), overshooting the mean estimate for 700 million Swiss francs in the bank’s own poll of 17 analysts.

“We are today announcing a series of strategic initiatives to improve effectiveness and to generate efficiencies,” Mr Gottstein, who became CEO in February, said in a statement, as he unveiled the plan to merge the investment banking units.

“These initiatives should also help to provide resilience in uncertain markets and deliver further upside when more positive economic conditions prevail.”

The bank said it was aiming to generate run-rate savings of approximately 400 million francs annually from 2022 onwards through various strategic measures announced.

The bank will also combine its compliance and risk functions under one head.

The bank said it was planning to go forward with payout of the second half of its 2019 dividend later this year, adding its board would review its share buyback subsequently.

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