Credit Suisse is considering the sale of part of its wealth management business in Germany to boost the profitability of its onshore businesses in western Europe.
The sale deliberations are part of a plan to focus more on business from its wealthiest clients, with more than $50 million in assets, according to a report published by Reuters.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Swiss banks have struggled with profitability in their European operations, which are less lucrative than the offshore services they provide in Switzerland for overseas customers.
In December, Credit Suisse shrank its German private bank branch network to nine from 12 and said it would lay off 150 of 500 staff.
In a presentation to investors in New York earlier this week, Brady Dougan, chief executive, said that of the CHF1.9 billion in cost reductions Credit Suisse hopes to achieve between now and 2015, CHF750 million would come in the private bank.
Swiss and emerging-market clients account for about 70% of the private bank’s assets under management, Dougan said.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataDougan also acknowledged that the Swiss group faced ‘continued challenges’ in improving the profitability of its western European onshore activities.
Earlier this year, Credit Suisse bought the European and Middle Eastern wealth management unit of rival Morgan Stanley, in a deal that included $13 billion in assets under management, and about 60 client managers, most of whom cater to the very wealthy.
Credit Suisse declined to comment on its plans for Germany.
