Credit Suisse to merge investment banking units, beats quarterly expectations

The logos of Swiss banks UBS and Credit Suisse are seen at branch offices in Basel Switzerland

The logos of Swiss banks UBS and Credit Suisse are seen at branch offices in Basel Switzerland

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

Worldwide wealth management, by contrast, was down on the previous year while the investment banking business suffered from the difficulties encountered on the market.

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.

Chief among the changes are the creation of global trading and investment banking units and the consolidation of its risk and compliance functions.

Gottstein is working to restore calm after a turbulent phase at the bank marked by a damaging spying scandal under Thiam, market volatility caused by the health crisis and a series of deals linked to scandal-hit companies. The bank worked on transactions linked to Luckin Coffee Ltd. and Wirecard AG, while also probing its own supply chain finance funds with links to Masayoshi Son's SoftBank Vision Fund for potential conflicts of interest.

The new "energy and infrastructure" group will be led by company veteran Tom Greenberg, who co-headed Credit Suisse's global oil and gas business, and Jonathon Kaufman, who joined the bank from rival Deutsche Bank AG in 2014 and was recently appointed as head of the global infrastructure, utilities and renewables group.

It claimed web earnings of 1.16 billion Swiss francs ($1.27 billion) in the 2nd quarter of 2020, up 24% for the same interval past yr. Analysts had expected internet financial gain of 838.9 million Swiss francs for the 3-month period by means of to the stop of June, according to Refinitiv. This includes creating a divisional unit focused on sustainability.

Despite the encouraging H1 results, Credit Suisse has not been immune to the economic impact of the Covid 19 pandemic.

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