Bloomberg News reports that the bank on Thursday outlined plans to return half of its profit, mainly through buybacks or special dividends, once it strengthens capital generation in 2019 and 2020. In a reminder that the path there may continue to be bumpy, Credit Suisse abandoned a profit target for its Asia-Pacific unit and warned that market conditions for its trading operations remain difficult in the final months of this year.
Thiam is seeking to persuade investors to stick with him for the final year of his turnaround plan, after tapping them for more than 10 billion francs since he first announced his strategy in 2015. While cost cutting is ahead of plan, surprise trading losses and a lack of volatility in markets have hampered revenue growth, and an activist investor recently started to campaign to break up the bank. Thiam said in an interview this week that he was “painfully aware” of the tough times shareholders have endured and signaled rewards are in store.
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