Credit Suisse CEO says ‘money is coming back into the firm’
- Credit Suisse CEO confirms client outflows are reducing significantly.
- He reiterated the company's commitment to turning a profit in 2024.
- A brief recap of what else he said in his interview with CNBC today.
Credit Suisse Group AG (NYSE: CS) is executing well on the strategic overhaul that it announced in the final quarter of 2022, says Ulrich Koerner – Chief Executive of the Wall Street bank.
Highlights from CEO’s interview with CNBC
More importantly, the financial services firm is seeing a meaningful decline in client outflows, he revealed this morning in an interview with CNBC at the World Economic Forum in Davos.
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We are in full execution swing. I think we’re making really good progress. The outflows have reduced very significantly and we’re seeing now money coming back in different parts of the firm.
CEO Koerner reiterated the company’s commitment to turning a profit in 2024. In comparison, it had $4.4 billion of loss in its latest reported quarter (find out more).
Nonetheless, Harris Associates, a Chicago-based investment company has trimmed its stake in Credit Suisse stock by over 50% since June 2022.
CS is bringing back its former board member
Credit Suisse is considering laying off 10% of its European investment bankers as part of a plan it announced earlier of lowering its headcount by 2,700 people this year.
It’s also in the process of rebranding its investment banking division in the United States as CS First Boston – a new unit that it wants Michael Klein (former board member) to head.
I’m really looking forward for Michael to join because he’s an excellent banker, excellent deal maker, and he’s very entrepreneurial. That’s why I want to go together with him on this journey. I’m very positive about that.
Credit Suisse is also set to buy his advisory boutique – M. Klein & Company. Year-to-date, shares of the bank are currently up more than 10%.