The initial public offering of the Swiss unit of Credit Suisse surprised analysts today. This is what CEO Tidjane Thiam wants to do with the money raised.
Tidjane Thiam (pictured) is a keen reader of his company's publications. For example the Credit Suisse Global Wealth Report, published by the Swiss banking giant only a few days ago. The paper served as proof that Switzerland was the richest country on earth, the Credit Suisse CEO said at the press conference presentation the bank's strategy today.
Based on this fact, Switzerland remains an attractive market for his bank – and the operations of the company correspondingly have to be bolstered there. His trump card is the IPO for Credit Suisse (Schweiz) before the end of 2017.
Takeover Plans
The money raised will be used as quickly as possible – with the blessing of Chairman Urs Rohner, also present at the media conference.
We will consolidate Swiss private banking, Thiam said. Using the money raised in the IPO, the bank had the necessary means to do so. He let it be known that the bank intends to buy several smaller institutes.
Bare Bones?
With Credit Suisse in the market for takeovers, the consolidation in the private banking sector of Switzerland will no doubt gather pace. The bank so far held back, with capital sparse. Zurich-based Julius Bär and Geneva's Union Bancaire Privée (UBP) had free reign.
That will change – but not before 2017. Credit Suisse rivals have two years to snap up the best available competitors, leaving the bare bones to Thiam.
