Credit Suisse Chairman: Bank Set To Boost Equity Returns

Advertisment

Urs Rohner, the chairman of Credit Suisse, said that the Swiss lender continued to be on track to boost its equity returns to at least ten percent next year.

Rohner has served as the chairman of the bank since 2011. He said that cost-cutting and closing down the strategic resolution unit of the bank – which has since weighed down its performance – would help in increasing the return on tangible equity (ROTE) for the shareholders from 6.3 percent in the first nine months of the year.

He stated: “With that, we will stand out in a cross-comparison with other banks in Europe.”

In an interview with the Neue Zuercher Zeitung newspaper, he said that he wanted to continue serving in his post until 2012 as long as the shareholders agreed.

The bank established a ROTE target of 10-11 percent during a recent investor day in London, at which it also confirmed its plans to raise its dividend by at least five percent annually starting from next year in an attempt to reward its shareholders who have suffered huge losses in recent years.

Tidjane Thiam, the chief executive of the bank, said the three-year restructuring of the company had been a success and the shareholders would be able to reap the benefits next year.

Rohner added that the efforts of Thiam may attract job offers from elsewhere, however, he was not concerned about his CEO jumping ship.

Rohner stated: “I know also that he very much enjoys working at Credit Suisse and that he is not planning to leave the bank.”

The bank has seen its shares drop by 38 percent over the year. It expects to report a pre-tax income of Sfr 3.2-3.4bn this year, hitting an annual profit for the first time since 2015.

Last month the Swiss lender said its third-quarter net profit increase by 74 percent year-on-year to Sfr 424 million (£337 million), further signalling that the restructuring was able to turn its fortunes around.

1 COMMENT

Comments are closed.