Credit Suisse to integrate Clariden Leu
Zurich - Credit Suisse announced today that it plans to fully integrate Clariden Leu into its organization. It expects to achieve further growth and annually recurring cost savings of around CHF 200 million as a result of this measure. This is part of the previously announced target to increase Private Banking’s contribution to the Group’s pre-tax income by CHF 800 million by 2014. Hans Ulrich Meister, Chief Executive Officer Private Banking of Credit Suisse, has been appointed Chairman of the Board of Directors of Clariden Leu. Hanspeter Kurzmeyer has been named as its new CEO. The legal and operational integration is expected to be completed by the end of 2012. The resulting job cuts are part of the 3% headcount reduction at Credit Suisse Group over two years that was announced on November 1, 2011.
Private Banking is crucial to the success of Credit Suisse
Urs Rohner, Chairman of the Board of Directors of Credit Suisse Group, stated: “Private Banking is crucial to the success of Credit Suisse. In view of the fundamental changes in the industry, we are currently determining which areas to prioritize for growth and investment, and we are focused on further increasing the profitability and efficiency of our Private Banking business. As part of this process, we have analyzed Clariden Leu’s contribution and development potential. Based on our analysis, we are convinced that combining Clariden Leu with Credit Suisse represents the best long-term option to create value for clients, shareholders and employees.”
Combining of strengths to grow, increase profitability and create new opportunities for clients
Over the last few years, Clariden Leu has positioned itself as a profitable internationally active private bank with proven investment expertise. Credit Suisse expects that the integration of Clariden Leu will enable it to further strengthen its leadership position in global private banking. It will also create new opportunities to better seize growth opportunities, to enhance earnings potential and to expand its business in key international markets. The anticipated annually recurring cost savings of around CHF 200 million are part of the previously announced measures to increase Private Banking’s contribution to the Group’s pre-tax income by CHF 800 million by 2014. By combining both banks’ expertise and business volumes, it will be possible to build on their achievements to date. The service received by Clariden Leu clients will, as far as possible, remain unchanged during and after the integration. In addition, they will be able to benefit from Credit Suisse’s extensive expertise as a globally active bank and will gain access to its integrated offering.
Hanspeter Kurzmeyer appointed new CEO of Clariden Leu
Olivier Jaquet has decided to step down as CEO of Clariden Leu Group. Hanspeter Kurzmeyer has been named the new CEO and Head of the integration project, which is expected to be completed by the end of 2012.
A seasoned banker and manager, Hanspeter Kurzmeyer has held various important positions at Credit Suisse for over 30 years and was, until recently, Head of Private Clients Switzerland. Hans-Ulrich Meister, who succeeds Peter Eckert as the Chairman of Clariden Leu, stated: “I wish to thank Peter Eckert and Olivier Jaquet for their commitment and for all they have accomplished at Clariden Leu. I also wish to thank Hanspeter Kurzmeyer for taking on this challenging project. He possesses the wealth of experience needed to lead the integration of Clariden Leu into Credit Suisse and to ensure that the process is conducted in a fair and transparent way, particularly for the employees concerned.”
Integration to be completed by end of 2012
It will take several months to complete the legal integration in accordance with the applicable regulatory and legal requirements. The operational integration of all of Clariden Leu’s business activities into Credit Suisse should be completed by the end of 2012. A package of measures has been drawn up in consultation with employee representatives for the individuals affected by this measure at both banks.
Credit Suisse AG
Credit Suisse AG is one of the world’s leading financial services providers and is part of the Credit Suisse group of companies (referred to here as ’Credit Suisse’). As an integrated bank, Credit Suisse offers clients its combined expertise in the areas of private banking, investment banking and asset management. Credit Suisse provides advisory services, comprehensive solutions and innovative products to companies, institutional clients and high-net-worth private clients globally, as well as to retail clients in Switzerland. Credit Suisse is headquartered in Zurich and operates in over 50 countries worldwide. The group employs approximately 50,700 people. The registered shares (CSGN) of Credit Suisse’s parent company, Credit Suisse Group AG, are listed in Switzerland and, in the form of American Depositary Shares (CS), in New York. Further information about Credit Suisse can be found at www.credit-suisse.com.
Cautionary statement regarding forward-looking information and non-GAAP information
This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act. In addition, in the future we, and others on our behalf, may make statements that constitute forward-looking statements. Such forward-looking statements may include, without limitation, statements relating to the following:
– our plans, objectives or goals;
– our future economic performance or prospects;
– the potential effect on our future performance of certain contingencies; and
– assumptions underlying any such statements.
Words such as “believes,” “anticipates,” “expects,” “intends” and “plans” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. We do not intend to update these forward-looking statements except as may be required by applicable securities laws. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other outcomes described or implied in forward-looking statements will not be achieved. We caution you that a number of important factors could cause results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include:
– the ability to maintain sufficient liquidity and access capital markets;
– market and interest rate fluctuations and interest rate levels;
– the strength of the global economy in general and the strength of the economies of the countries in which we conduct our operations, in particular the risk of continued slow economic recovery or downturn in the US or other developed countries in 2011 and beyond;
– the direct and indirect impacts of continuing deterioration or slow recovery in residential and commercial real estate markets;
– adverse rating actions by credit rating agencies in respect of sovereign issuers, structured credit products or other credit-related exposures;
– the ability of counterparties to meet their obligations to us;
– the effects of, and changes in, fiscal, monetary, trade and tax policies, and currency fluctuations;
– political and social developments, including war, civil unrest or terrorist activity;
– the possibility of foreign exchange controls, expropriation, nationalization or confiscation of assets in countries in which we conduct our operations;
– operational factors such as systems failure, human error, or the failure to implement procedures properly;
– actions taken by regulators with respect to our business and practices in one or more of the countries in which we conduct our operations;
– the effects of changes in laws, regulations or accounting policies or practices;
– competition in geographic and business areas in which we conduct our operations;
– the ability to retain and recruit qualified personnel;
– the ability to maintain our reputation and promote our brand;
– the ability to increase market share and control expenses;
– technological changes;
– the timely development and acceptance of our new products and services and the perceived overall value of these products and services by users;
– acquisitions, including the ability to integrate acquired businesses successfully, and divestitures, including the ability to sell non-core assets;
– the adverse resolution of litigation and other contingencies;
– the ability to achieve our cost efficiency goals and cost targets; and
– our success at managing the risks involved in the foregoing.
We caution you that the foregoing list of important factors is not exclusive. When evaluating forward-looking statements, you should carefully consider the foregoing factors and other uncertainties and events, as well as the information set forth in our Annual Report 2010 under IX – Additional information – Risk Factors.
This press release contains non-GAAP financial information. Information needed to reconcile such non-GAAP financial information to the most directly comparable measures under GAAP can be found in the Credit Suisse Financial Release 3Q11.
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