Credit Suisse is merging its eastern European private banking business (Private Banking EEMEA) with the Western Europe unit as it shifts regional focus after recording heavy losses due to crackdowns on untaxed offshore funds.
The new business area, Private Banking Europe, Middle East and Africa (EMEA), legally effective from 1 October 2014, aims to achieve ‘superior revenue growth’, the bank said in an internal memo.
Go deeper with GlobalData
"The time is right to bring the two teams back under one management," said Gael de Boissard the bank’s chief executive officer for EMEA and Hans-Ulrich Meister, co-head of the bank’s private banking and wealth management unit.
"Significant progress has been made in solving legacy cross-border tax matters with the aim to finalize by the end of 2015," they added.
The 40-year veteran of the bank, Alois Baettig is abandoning his role as head of Private Banking EEMEA, with Romeo Lacher, already heading the western business, leading the newly-formed unit.
According to the memo, the bank will pursue a UHNW and Premium HNWI segments target strategy in Western Europe, following the recent moves such as the sale of its German unit to Frankfurt-based Bethmann Bank and the planned disposal of the Italian affluent and upper affluent private banking operations to Banca Generali.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe bank declined to comment further on the recent changes when contacted by PBI.
In its latest financial results, Credit Suisse reported a steep loss of about CHF30 billion ($32.3bn) in funds from wealthy clients over the past few years.
The Swiss banking giant also recorded a net loss attributable to shareholders of CHF700 million (US$779 m) in Q2 2014, compared with net income on the same basis of CHF1.045bn in 2013 after being fined $2.6bn for helping American clients evade taxes.
The group is expected to lose another CHF15bn.
Swiss banks, including Credit Suisse and UBS, have lost CHF350bn in outflows from overseas clients over the past six years following increased investigations on offshore tax evasion, according to PwC.
Earlier this month, Credit Suisse and Julius Baer were reportedly holding talks about a possible merger.
