The plans were adventurous. As a Tidjane Thiam at the end of October 2015, at his first investors conference as a CS-in-chief presented his plans for the Bank, he announced a series of ambitious goals. So should shrink until 2018, among other things, the investment Bank by 20 percent, the costs will decrease to 3.5 billion and pre-tax profit to 10 billion Swiss francs, rock climbing.
Now Thiam stepped back in front of the main donors to the Bank. In between three years and demanded the staff of the Bank much. The reconstruction of the Institute was profound, and has cost thousands of Jobs, and for three annual losses in a row. The Bank was established in comparison with the competition is bad, but now it is better summed up in CS-chief financial officer David Mathers has been the process. You have achieved almost all the objectives it set for itself, the conclusion of the chief days.
Some important targets were missed. The Bank next to it is the pre-tax profit significantly. He should be in the current fiscal year, approximately 3 billion Swiss francs. The Asia business has not developed as hoped, and the investment Bank is smaller, but it remains the problem child.
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In comparison to 2015, the problems with the Department are much smaller. At that time, investment banking was in CS is huge and a risk of the Bank. This meant that the CS had to reserve 50 percent of their capital for the trading division. Since then, the Department has lost some of its importance, you need to now about 30 per cent of the capital. The Bank is thus less risk and lower costs. That is not enough to lead them persistently in the profit zone. Thus, it is expected for the current quarter is a loss.
Despite the downsize, they will be regarded by the analysts, such as those of Morgan Stanley, is still too large. This is because the Bank earns with the Department in comparison to the other divisions, such as the Swiss unit, and their revenues are subject to greater fluctuations. These require much less capital, and throws off a steady income. Tidjane Thiam, however, want to know of a further Shrinking of the trade Department, nothing but the division of time. The successes in the asset management made it possible to wait for the recovery.
another Plan was almost already forgotten. Three years ago Thiam presented the idea to sell the Swiss business, the CS part. Today, he should be glad not to have done: It is the crown jewel of the Bank. The harsh austerity of recent years has been the Swiss unit to become one of the most profitable banks in Switzerland, this is because at the same time, revenue rose. But the pressure was so great that the competition spoke of a restructuring case, although the Bank achieved steady gains.
The price for the problems of the past
After all, it should be now with the savings rate. Comprehensive savings programmes should not be the norm, says chief financial officer Mathers. The cost will now be in the traditional fields decline continuously, and the savings in new growth businesses invested in. How exactly expire, but remained Vague. Thus, the CS is there but not alone, also in the competition, it is desperately looking for new sources of revenue.
No success story was the conversion for the shareholders. The CS share price has lost since the autumn of 2015, more than 50 percent of their value. Around a third of the price slumped this year. This is the price for the problems of the past. Copyist, buses and thicker capital cushion have cost the Bank a lot of money. In recent years, two capital goods, therefore, necessary to increase.
Also, UBS is 30 percent Minus
It is small consolation that the securities have lost many of its competitors. The UBS share price this year is also around 30 per cent in the Minus. This is also true for some of the big US banks. The economic Outlook for the U.S. deteriorates, add to this the concern for the economic development in Europe. The Bank shares are considered to be an early indicator of a bad mood, and the investors are separate from you. The slowdown in the global economy could make the investment Bank of the CS particularly strongly.
Since the tag draws to a close now, the end, wants to give the Bank the share price a boost. The Executive elects for a tried and tested means. It announces a share buyback program of up to 1.5 billion Swiss francs. In 2019 it will still be one. In addition, it was announced for the next two years, of an ordinary dividend. The consolation came good. The share price rose on Wednesday to nearly 3 percent.
(editing Tamedia)
Created: 13.12.2018, 09:02 PM
