Credit Suisse reported a 69% hike in annual net revenue Thursday in a bittersweet swan song for departing CEO Tidjane Thiam.
Thiam quit after a spying scandal at the financial institution sparked a boardroom revolt and can depart formally on Friday. Firm veteran Thomas Gottstein might change him.
Gottstein stated the group remained dedicated to its strategy and previously introduced targets.
Net revenue surged to 3.419 billion Swiss francs ($3.50 billion) for the year. Analysts had, on average anticipated Credit Suisse to generate 3.5 billion francs, based on a consensus of 13 analysts compiled by the bank.
Thiam spent much of his four and a half years at Credit Suisse trying to place the lender on a steady footing – slashing costs and exiting riskier and more capital-intensive funding banking activities.
However, his legacy might be outlined by the spying controversy which saw Credit Suisse admit to snooping on two former officials. The bank blamed the espionage on a rogue mission run by one of Thiam’s closest lieutenants.
Even with the shake-up undertaken by Thiam, Credit Suisse is facing a harsh working environment with more opponents now concentrating on wealth management, ultra-low rates of interest, and the threat from passive investing.
The lender cut its 2019 and 2020 profitability targets in December, blaming a fall in dealmaking, negative rates of interest, and global trade worries for the climb down.
At 9%, the bank’s return on tangible equity (RoTE) for last year matched the lowered expectation of above 8% it decreased in December.