is not the first non-Swiss chief executive of Credit Suisse. His American predecessor, Brady Dougan, held the job for eight years. But Mr Dougan was an insider, having been at the firm for ages. Mr Thiam was anything but. A citizen of France and Ivory Coast, where he was a government minister in the late 1990s, he had been a consultant at McKinsey and had overseen the European arm of Aviva and the whole of Prudential, two British insurers.
The firm’s shares—and presumably Mr Thiam—still bear the imprint of those rights issues and write-downs. Their price is half what it was when Mr Thiam took over, and about 70% of tangible book value. The bank is still not free of legal and ethical shadows: it is being sued over loans in Mozambique before his time .
He borrows a parallel from his former trade. Insurers prefer policies with repeated premiums to one-offs. Revenues from managing the assets of the wealthy, Mr Thiam says, recur like the former, because once clients place money with you, then, if you look after them, they tend to stay; trading revenues come and go like single premiums. Net new assets in wealth management in all territories have been growing at about 5% a year, and profits at 15%.
Yet with wealth on the up and trading in retreat, revenue growth has been sluggish. Profits have risen mainly because costs have been cut. Operating costs have been slashed by 18% in four years. Rather than shave budgets across the board, Mr Thiam canned whole activities, such as private banking in America. “Cost cuts have to be binary,” he says. Then fixed expenses, such as floor space and computer systems, can be got rid of.
if he's the man, it depends on him.
You’ve been posting this article for well over a week now. Can we please move on
CoBond_007
I wonder if a billion quick is more humane for the climate that do do the change? All classes on deck for the peace train or the torture for no reason psychological scum freaking of the species with raper moves of all sorts?
Great job Tidjane! INSEAD MBA Alumnus INSEADAlumni MBA mbacroatia
...the Nordberg case, obviously...
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