Credit Suisse (CSGN.S) needs to execute its revamp successfully and end a string of negative headlines from Switzerland’s second-biggest bank, Swiss National Bank Chairman Thomas Jordan said in an interview aired on Saturday.
Credit Suisse in October announced a plan to raise capital, slash its workforce and focus even more on its flagship wealth management franchise while scaling back volatile investment banking after a string of losses and risk-management failures.
It said this month the turnaround was well under way after completing a 4 billion Swiss franc ($4.3 billion) capital hike.
“It is clear that such a reorganisation of the bank, the reorientation of the business model, is not something that can be done overnight. It takes time, it is a big challenge for the management and employees of Credit Suisse,” Jordan told Swiss broadcaster SRF in an interview.
He reiterated that the successful capital increase was a “milestone” in the bank’s revamp that reduced risk and was positive for the stability of the Swiss financial sector.
Asked if he was sleeping more easily, he said:
“Of course we know that Credit Suisse is in an important transformation process, it is not something that can happen by itself, it requires the full concentration of the management of Credit Suisse, but it is important that they now consistently implement the announced strategy and that it goes in the right direction.”