A sign above the entrance to Credit Suisse Group AG headquarters in Zurich, Switzerland, on Monday, November 1, 2021.
Thi My Lien Nguyen | Bloomberg | beautiful pictures
Credit Suisse has vowed to pass risk management and overhaul compliance in the face of a series of scandals, despite what its CEO called a “challenging” environment.
The reputable Swiss lender will host an Investor Deep Dive event on Tuesday, outlining priorities and reform progress to date across its risk, compliance, technology and operations functions. along with the asset management business.
Credit Suisse warned earlier this month that it is likely to record a loss in the second quarter, due to the war in Ukraine and tight monetary policy tightening its investment bank.
It follows a string of scandals and mishaps at the bank in recent years. It reported a net loss in the first quarter of 2022 as it continued to grapple with litigation costs related to Archegos . hedge fund collapse.
The bank suffered a heavy loss after crisis of the US hedge fund Archegos Capitalbecause it cuts ties with the troublesome family office.
“Despite the challenging market environment, we remain resolutely focused on executing our strategic plan in the transition year 2022 and strengthening our risk culture – it’s important to stand by our side. with customers,” Credit Suisse CEO Thomas Gottstein said in a statement ahead of Tuesday’s investor event.
“At the same time, we are continuing to drive the bank’s digital transformation, which is key to building a strong, scalable and agile organization fit for the future.”
In its presentation to investors, the bank will outline how the Archegos crash highlights weaknesses in its risk management, where the “sustainability of results deviates from historical performance.” history.” It also details how it has recalibrated its aggregate risk profile to reduce exposure to higher risk areas of the market.
A series of scandals have prompted some shareholders to call for a change in management just two years since Gottstein took over former CEO Tidjane Thiam, who resigned after a protracted spy story.
However, President Axel Lehmann told CNBC in May that CEO Thomas Gottstein has the full support of the board to continue to “rebuild” the company.
Meanwhile on Monday, Credit Suisse and a former employee are found guilty of Switzerland’s Federal Criminal Court for failing to prevent money laundering by an alleged Bulgarian cocaine trafficking gang between 2004 and 2008. The trial was the country’s first criminal case. against one of their big banks.
