Credit Suisse says overhaul is “well on track”
Summary
- The bank indicated that the latest plan to rightsize could mark a fundamental reset of its strategy
Credit Suisse shares rose 2% Monday after the bank said it is well on track to produce a strategy update, due Oct. 27, that could include selling assets and divesting businesses.
Its [shares had slumped Friday, dropping 12% on worries it will have to issue new stock.
The bank indicated that the latest plan to rightsize could mark a fundamental reset of its strategy. In recent decades, it has combined global wealth management with a large investment bank and a domestic Swiss arm.
It repeated plans to strengthen its wealth-management business, refocus its investment bank around corporate advice and dealmaking, and to evaluate options for its capital-heavy securitized products business, such as outside investment.
Some analysts have said a new share sale may be inevitable to cover restructuring costs and growth plans, even with asset sales and the involvement of outside investors. Uncertainty about the bank’s future shape has been a main driver of the stock’s 53% fall this year.
This story has been published from a wire agency feed without modifications to the text