Swiss banking group Credit Suisse intends to trim headcount in coming years as it embarks on automation drive and leans more towards digital in the wake of the Covid-19 crisis.
Speaking to Swiss newspaper NZZ, Credit Suisse CEO Thomas Gottstein said: “Medium-term, we will certainly be able to get by with fewer staff – primarily, as we continue to automate business.
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“Many processes can still be streamlined. That is one of my priorities. But we also want to grow, especially in our business with very wealthy clients and in our Asian business.”
However, Gottstein believes that a loss this year is unlikely even with higher provisions for its Swiss and international operations in the next six to 12 months due to the crisis.
Cost cut on office space is also on the cards by expecting employees to spend 10%-20% of their time working remotely in the future, Gottstein noted.
Moreover, Credit Suisse expects to benefit from the decrease in travel and adoption of video conferencing.
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By GlobalDataGottstein said that the bank intends to run fewer branches as demand for online banking rises amid the pandemic.
He stated: “As universal banks, we can learn a great deal from (digital providers such as Revolut and N26), especially when it comes to offering customers services via digital channels in the simplest, quickest and most convenient way possible.
“In the coming months, we will respond to these new competitors with various offerings.”
Gottstein also sees “optimisation potential” within the bank’s loss-making investment banking and capital markets unit.
Credit Suisse registered pre-tax income of CHF1.2bn ($1.23bn) in Q1 2020, up 13% on a year-on-year basis despite the pandemic.
However, the bank decided to revise its dividend payout proposal bowing down to regulatory pressure.
The bank will now split its dividend into two separate payments.
