Tidjane Thiam, Chief Executive Officer
Timothy O’Hara, Chief Executive Officer of Global Markets
David Mathers, Chief Financial Officer
March 23, 2016
- Our recent performance has further highlighted two key areas of challenge for Credit Suisse:
- – Our fixed cost base and
- – Our scale in Global Markets in the Americas and Europe
- This has translated into pressures on our capital position as demonstrated in a lower than expected CET1 ratio as reported at the end of 4Q15.
- A number of actions had been underway since October, to address these challenges. We had set ourselves:
- – A gross cost saving target of CHF 3.5 bn by the end 2018
- – A RWA target of USD 83-85 bn in Global Markets by end 2018 from USD 118 bn at 3Q15
- When we presented our 4Q15 results on February 4, we said that we would reassess our plans to (i) reduce our cost base and (ii) right size Global Markets. Since then, the market environment has remained unsupportive, with continued pressure in 1Q16. Like for the previous quarter, Global Markets will contribute a negative result in 1Q16, albeit at lower levels.
- We have now completed the reassessment of our plans and we are announcing today a step up in the pace of our restructuring with:
- – An increase of our gross cost saving target from CHF 3.5 bn to CHF 4.3 bn with a CHF 1.7 bn gross cost savings target for 2016
- – A new RWA target of USD 60 bn for Global Markets, approximately 30% below the previous targets