Credit Suisse’s Chairman Denies Speculations Of A Possible Sale Of The Bank
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Chairman of Credit Suisse Axel Lehmann has denied any attempts to merge or sell the troubled Swiss lender after a report of heavy loss in the second quarter of the year.
The latest financial statement from the bank shows a net loss of 1.593 billion Swiss francs ($1.66 billion) in Q2 2022. Following the loss, the bank’s Chief Executive Officer, Thomas Gottstein announced his immediate resignation. Asset management Chief Executive Officer, Ulrich Koerner has been announced as his replacement.
Credit Suisse To Work Towards Turning The Bank’s Fortunes Around
Credit Suisse has vowed to increase its efforts to change the group’s structure amid scandals and increasing losses the company has suffered in recent times. One of the negative impacts n the company is the collapse of the Archegos hedge fund, which has resulted in several litigation costs.
Following the poor performance of the company in recent months, there have been speculations that it could be considering selling off its assets or merging with another company to boost its liquidity. However, Lehman assures the public through CNBC that the speculations are merely rumors and the company is not planning something like that.
He added that despite the loss, the firm is still doing well in its capital CET1 ratio, which is 13.5%.
“…..we are certainly going to defend our CET1 ratio until the end of the year, between 13 and 14%,” he added. This ratio is used to measure a company’s solvency, and Credit Suisse says it’s still in good standing in that regard.
No Takeover Bid Expected
While calming investors’ minds regarding a speculated insolvency, Lehmann assured them that the company is not planning on any takeover business. The assurance is coming after speculations that U.S. bank State Street could be planning to acquire Credit Suisse. When asked whether he has plans to merge or sell the company, he responded with “that is a clear no.”
But the increasing costs recorded by the bank have not gone away. It has now rolled out a strategic review and redirected its asset management operations. The bank stated that it will provide additional details regarding the progress of the review in the third quarter of the year.