ZURICH (Reuters) – The Swiss bank said on Monday that Credit Suisse Group is proceeding with its strategic review that includes potential divestitures and asset sales, stressing that it will share more details with third-quarter results due on Oct. 27.
“While there has been a high level of media and market speculation about the likely outcome over the past days, the bank is committed to providing more details on the progress of the strategic review…” he said in a statement.
Citing people familiar with the situation, Reuters reported last week that Credit Suisse is looking to investors for fresh cash as it tries to overhaul the investment bank.
As the bank said in July, it is considering measures to boost its flagship wealth management franchise, downsize its investment bank to a “capital-lightweight, advisory-led” business, and evaluate strategic options for its securitized products business, and lower its cost. Less than 15.5 billion Swiss francs ($15.75 billion).
She said the board and executive board are studying alternatives beyond the results of last year’s strategic review.
“The bank is currently implementing a number of strategic initiatives, including potential divestitures and asset sales,” he added.
Shares in Switzerland’s second-largest bank rose 2.7% in early trade after dropping more than 12% to record lows on Friday.
โFundamental changes are needed in the troubled bank. It will be difficult to find the right balance between the necessary
Daniel Boshard, an analyst at Lucerne Cantonalbank, wrote in a note: Downsizing where the risk-reward ratio is incorrect and avoiding too large a cut in the bank’s body.
(dollar = 0.9839 Swiss francs)
