homebusiness Newscompanies NewsDavos 2023: Credit Suisse well on track with restructuring plan, says CFO Dixit Joshi
Davos 2023: Credit Suisse well on track with restructuring plan, says CFO Dixit Joshi
India is a major focus for Credit Suisse, as it is their second-largest number of employees, with over 9,000 employees in the country.
Swiss bank Credit Suisse is well on track with its restructuring plan, CFO Dixit Joshi, told CNBC-TV18 during the World Economic Forum at Davos, Switzerland. The company had last year announced its cost-cutting plan of $2.5 billion over a three-year period time, and is currently implementing it, he said.
It is also working on selling some of its securities businesses within the investment bank while also refocusing on its wealth management and asset management services, he said. The bank has completed raising a $4 billion capital raise in December, he added.
The implementation of the strategy gives confidence to all stakeholders, and the bank has deleveraged its investment bank to free up capital.
The bank had last year announced laying off 5,000 people as part of its cost cutting exercise after it announced an overhaul and restructuring to return to profitability.
Interestingly, yesterday (January 18), Credit Suisse CEO Ulrich Koerner was quoted by Reuters as saying that "Outflows have reduced very significantly and we are seeing money now coming back in different parts of the firm."
"Outflows have reduced very significantly and we are seeing money now coming back in different parts of the firm," he said.
Joshi also mentioned that resilience is what the bank is hearing from clients, as they have seen supply chain disruption in the chip sector. However, companies can have supply chain redundancy built into them, and inflation is not as bad as thought, with some demand coming off. A milder winter and lower energy prices are also contributing to cautious optimism being seen in Davos.
The bank has already seen the impact of high interest rates and is seeing a rebalancing of asset cycles across the globe. He said that markets can do the work of the central bank as well.
India is a major focus for Credit Suisse, as it is their second-largest number of employees, with over 9,000 employees in the country.
India is also a big hub for service centres which are an extension of the US globally to make the firm less complex and more efficient. Capital generally goes to places with the most certainty and returns, and India is continuing to accelerate.
The big theme globally is energy transition and sustainability, and China will be a big driver of global growth and change this year. The bank is encouraged by early signs in China, despite some uncertainty on the geopolitical side, as many risk factors have diminished earlier. Overall, Credit Suisse is optimistic about the future and continues to execute its strategy to reposition the bank for success.
First Published: Jan 19, 2023 9:38 PM IST
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