The growth will come from asset management.
Bloomberg News reports that Credit Suisse will shrink parts of its investment bank and focus on growth in Asia and wealth management, said its new chief executive officer. The shares surged the most in four months.
'We’re dealing with a really very well performing investment bank, but where sometimes regulation has developed in an unsupportive or unfavorable way and the pragmatic thing to do is take that into account', Tidjane Thiam, who started as CEO this month, told analysts on a conference call Thursday. That will mean shrinking some of the division’s activities, he said, without identifying them.
As global regulators order lenders to hold more capital to absorb potential losses, the fixed-income trading departments of their investment banks have been among the most affected.
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