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Credit Suisse ceases Leu brand
Source: Agencies |
November 16, 2011, Wednesday
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Print Edition
Print Edition
CREDIT Suisse said yesterday it plans to fully integrate historic private bank Clariden Leu into its organization, cutting 550 jobs to achieve 200 million Swiss francs (US$220 million) in annual cost savings.
Credit Suisse said the step was part of plans announced earlier this month to increase the contribution of its private bank to group pretax income by 800 million francs by 2014.
A spokesman said the integration meant 550 jobs would go at both Clariden Leu and Credit Suisse as part of a total group staff reduction of 1,500 announced on November 1.
"The integration of Clariden Leu shouldn't have a big influence on the share price of Credit Suisse as 200 million francs is not so much," one Zurich trader said.
However, the trader said news that ratings agency Moody's was putting the bank's AA1 rating under review for a possible downgrade was likely to hit the shares.
"Credit Suisse expects that the integration of Clariden Leu will enable it to further strengthen its leadership position in global private banking," the bank said. "By combining both banks' expertise and business volumes, it will be possible to build on their achievements to date."
Established in Zurich in 1755, Clariden Leu, which has 1,770 staff and 15 offices worldwide managing 94 billion francs in assets, absorbed Credit Suisse's other independent private banks in 2007.
The Swiss private banking industry is seen in dire need of consolidation given rising costs and falling revenues, particularly as the industry has been forced to move away from a business model that often relied on offshore tax evasion.
Credit Suisse said the step was part of plans announced earlier this month to increase the contribution of its private bank to group pretax income by 800 million francs by 2014.
A spokesman said the integration meant 550 jobs would go at both Clariden Leu and Credit Suisse as part of a total group staff reduction of 1,500 announced on November 1.
"The integration of Clariden Leu shouldn't have a big influence on the share price of Credit Suisse as 200 million francs is not so much," one Zurich trader said.
However, the trader said news that ratings agency Moody's was putting the bank's AA1 rating under review for a possible downgrade was likely to hit the shares.
"Credit Suisse expects that the integration of Clariden Leu will enable it to further strengthen its leadership position in global private banking," the bank said. "By combining both banks' expertise and business volumes, it will be possible to build on their achievements to date."
Established in Zurich in 1755, Clariden Leu, which has 1,770 staff and 15 offices worldwide managing 94 billion francs in assets, absorbed Credit Suisse's other independent private banks in 2007.
The Swiss private banking industry is seen in dire need of consolidation given rising costs and falling revenues, particularly as the industry has been forced to move away from a business model that often relied on offshore tax evasion.
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