- Investor doubts surface afer Thiam’s year on the job
- Some employees, investors have criticized bank’s leadership
Credit Suisse Group AG’s Chief Executive Officer Tidjane Thiam said the bank he’s been leading for a year will neither be dismantled nor sold.
“The Group will stay intact,” Thiam told Swiss newspaper SonntagsBlick. “A takeover is not a subject.”
Investors in the second-biggest Swiss bank are doubting his ability to turn around its struggling investment bank as share prices hover close to record lows. The CEO announced an overhaul in October that shifts Credit Suisse away from investment banking, to focus more on managing money for rich people.
The slumping share price and losses in the first two quarters after the strategy announcement caused some employees and investors to criticize the bank’s leadership. Chairman Urs Rohner, who hired Thiam, turned to another Swiss newspaper last month and said he was convinced Thiam is the “right man” for the job.
Credit Suisse is down 51 percent so far this year, the most among a group of global investment banks tracked by Bloomberg Intelligence. Shares closed at 10.53 Swiss francs ($10.82) on July 1, valuing the bank at 22 billion francs.
As part of the strategy and to supplement a share sale of about 6 billion francs in the fourth quarter last year, Credit Suisse plans to raise 2 billion francs to 4 billion francs by selling a minority stake of its Swiss business to the public next year. SonntagsBlick cited the sale as the reason for speculation the bank could be broken up.