C Suisse drops investment banking incentive targets

Credit Suisse won’t be setting profit targets at its shrinking investment bank as it seeks to reduce risk-taking at the unit.

Bloomberg News reports that the investment bank is there to 'support our ambitions in the private banking and wealth management space', CEO Tidjane Thiam, 53, told investors meeting on Thursday in Bern to approve the company’s stock sale.

The bank is not setting 'profit targets to ensure that our bankers do not have incentives to engage in overly risky activities. That is an important aspect of our new strategy'.

In the meantime, Reuters reports that Credit Suisse shareholders overwhelmingly backed capital increases totalling around $5.9bn to bulk up the bank's balance sheet and help fund a restructuring.

The bank announced the cash calls last month as part of a new strategy under Chief Executive Tidjane Thiam who has embarked on the biggest overhaul of the bank in almost a decade.

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