Credit Suisse considers maintaining its Wealth Management Business

Credit Suisse Group considers maintaining its vital wealth management business, combining several private banking units in order to save costs. Also, it tries to centralize control as the company seeks to overcome recent scandals.

According to people familiar with the matter, this move might throw away a structure that gives regional chiefs power, particularly in Asia. People say that the bank might consider appointing global wealth management to oversee the unified business.

New Chairman Antonio Horta-Osorio guaranteed to review the bank’s business after the Greensill Capital scandals, and the dual Archegos Capital Management shook the Swiss company. Chief Executive Officer Thomas Gottstein simplified the bank’s structure and decided to reduce duplication even before those incidents. He tried to combine markets division and the investment bank in one of his first maintenance while folding several Asian markets activities into that unit.

Combining these separate wealth management businesses under global leadership might mirror its biggest rival – UBS Group AG. There, co-heads Tom Naratil and Iqbal Khan lead the wealth management.
The move might roll back a structure set up by former chief executive officer Tidjane Thiam over five years ago and might present a more unified approach to clients and trim expenses. The lender now splits private banking into three divisions: Europe, Switzerland, Asia, emerging Latin America, and Europe.

Helman Sitohang, Andre Helfenstein, and Philipp Wehle share responsibility for the wealth management operations, which gained importance in the investment bank. According to several people who heard these remarks, Horta-Osorio told bankers at a meeting in London that the firm has a great wealth management business providing necessary services.

Chairman’s Review

Chairman talked about Credit Suisse, which is in its most difficult periods after the great financial crisis, resulted from the dual blow-ups imposing the multi-billion dollar losses and reducing its reputation this year. Horta-Osorio said that he is facing the most significant problems he had ever lived through over three decades in this industry.