Credit Suisse Group AG, Switzerland’s second-largest bank, named Marisa Drew and Ewen Stevenson as co-heads of European investment banking to replace Jamie Welch, who will leave to join a client.
Drew is co-head of the global market solutions group and Stevenson is co-head of the global financial institutions group, the bank said in memorandums to employees today. A spokesman for Credit Suisse in London confirmed the contents. Welch will join Dallas-based Energy Transfer Partners LP as chief financial officer and head of corporate development.
It “looks like the natural progression of bankers following a high profile departure,” said Christopher Wheeler, a London-based analyst at Mediobanca SpA. “Banks are not keen to spend money on new blood in these markets, they would rather promote internally and minimize disruption.”
Credit Suisse posted a jump in first-quarter profit last month on lower costs and improved earnings at the securities unit. Revenue from underwriting and advisory at the Zurich-based bank rose 3.4 percent to 763 million francs ($822 million), as increases in debt and equity underwriting were partially offset by lower fees from mergers and acquisitions.
Europe, Middle East and Africa “is an important contributor of revenue and cross-border mergers and acquisitions and financing activity for our global franchise,” Gael de Boissard, chief executive officer for Europe and global head of investment banking Jim Amine said in the memo. “Our investment-banking franchise in EMEA is now well positioned to capitalize on revenue opportunities.”
Drew was hired from Merrill Lynch & Co. to head its European leveraged corporate finance business in 2003, while Stevenson joined the bank in 1989. Both will also continue in their current positions, Credit Suisse said. The moves were reported by Financial News earlier today.
Welch joined Credit Suisse in 1997 and has held other positions including co-head of global energy. His clients included TXU, which is now called Energy Future Holdings Corp., Energy Transfer and Dynegy Inc.
“As a result of changes he made to the business model, our franchise in EMEA is poised to deliver solid results in the current muted market conditions,” Amine said in the memo, referring to Welch.
The bank’s Chief Executive Officer Brady Dougan said on April 24 the first-quarter performance showed that Credit Suisse’s strategy of cutting costs across businesses while sticking to a fully-fledged investment bank as UBS AG scales back “is working.”