Credit Suisse Overhaul Takes a Three-Pronged Approach

Credit Suisse Group AG is going to look like a different company when its plans for a major face-lift are realized. Those plans include a fairly thorough management change; a new structure for the company; and an initial public offering to complete the process.

Restructuring will take the form of dividing the company into three major divisions based on regional focus. The restructured company plans to hold an IPO of the Swiss Universal Bank before 2017 ends. The hope is that they will be able to take advantage of consolidation in the industry together with enlarging their capital base.

New management executives will be brought in, replacing such people as Phil Vassan, CEO of Credit Suisse’s US Private Banking since 2013. Dubbed Credit Suisse’s revenue machine, Vasan was brought in from heading the bank’s prime brokerage division to help bring the US private banking division to profitability.

Also leaving is Gael de Boissard, who was with Credit Suisse since 2001 and joined the executive board in 2013. Hans-Ulrich Meister became part of the executive board in 2008. Rob Shafir worked with Meister in the private banking and wealth management unit, and joined the executive board in 2007.

The new faces which will be joining Credit Suisse include Helman Sitohang, who will be in charge of APAC; Iqbal Khan is taking over the International Wealth Management division, and Pierre-Olivier Bouee will fill the role of chief operating officer.

In addition to these moves Credit Suisse will be “right-sizing” in London, and reducing the capital it dedicates to its securities unit by making cuts to their macro and prime services businesses. The company is also raising 6.05 billion francs ($6.3 billion) through the sale of shares, while at the same time cutting back their expenses by 3.5 billion francs, including layoffs for 1,600 employees in Switzerland.