Research Triangle Park – Credit Suisse said Wednesday that CEO Thomas Gottstein is stepping down after 2-1/2 years on the job, citing “disappointing” results, declining revenues and a net loss in the second quarter.
The financial giant’s major presence in RTP is a technology center that opened in 2019. The project was announced in 2017 and over time, Credit Suisse promised to receive $40 million in tax incentives if it created 1,200 jobs.
Credit-Swiss said the center will provide business continuity, information technology and operational support services. More than 20 jobs have been posted in the Triangle and it continues to hire.
These are the latest signs that the top-drawer Swiss bank is not yet done with a series of problems in recent years.
The Zurich-based bank said Ulrich Koerner, who brought Gottstein on board last year from rival UBS, would take over the helm from Monday.
Credit Suisse has announced a new “strategic review” that will help cut costs, among other things.
Credit Suisse has opened a new building in RTP as part of a $100M, 1,200-job expansion.
Gottstein, a 23-year veteran of the bank, cited “personal and health-related issues” to hand over to Koerner.
Overall, Credit Suisse reported a net loss of 1.6 billion Swiss francs (about $1.7 billion) in the second quarter, compared with a profit of 253 million francs a year earlier. Revenue fell 29 percent to 3.6 billion.
Overall, Credit Suisse said, “The combination of geopolitical conditions following Russia’s invasion of Ukraine and significant monetary tightening on inflation by major central banks has resulted in high volatility and client risk aversion this year.”
In addition, the current market conditions “had a negative impact on client activity in both wealth management and investment banking.” Those represent the two most important functions of the bank.
Credit Suisse says the spread of credit transfers has resulted in losses of around a quarter of a billion dollars across its leveraged finance portfolio. He also mentioned provisions for legal expenses.
A senior executive in Credit Suisse, who is growing the existence of RTP, resigned in the spying scandal
“Our 2022 second quarter results were disappointing, particularly in the investment bank, and were also impacted by higher litigation provisions and other adjustment items,” Gottstein said.
Credit Suisse has suffered a series of problems in recent years, including a bad bet on a hedge fund and a spying scandal involving UBS. Also, a Swiss court fined the bank more than $2 million 15 years ago for failing to prevent money laundering linked to a Bulgarian organized crime group.
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