Credit Suisse is set to reduce the number of its branches in Switzerland from 146 to 109 in response to the increasing adoption of digital channels by clients, especially amid the Covid-19 pandemic. The move puts several jobs at risk.
The downsizing exercise will be implemented by the end of this year.
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In this context, Credit Suisse highlighted that the use of online banking at the bank jumped by around 40% and the use of mobile banking increased by over two-fold in the past two years.
However, branch visits have been decreasing for years.
Under the new plan, Credit Suisse will consolidate its Neue Aaargauer Bank (NAB) subsidiary in Canton Aargau – with nearly 530 employees and AUM of around CHF19bn – with its main business.
Together, the duo has 30 branches in Canton Aargau. The number will be reduced to 12 following the merger.
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By GlobalDataPost merger, Roberto Belci will be responsible for the management of Private Banking and the entire Aargau region that is expected to be managed as an individual business region in the future.
The region will be one of the three largest regions within the bank’s Swiss Universal Bank unit.
At present, Belci is the Head of Private Banking and the Private and Corporate Clients business of NAB.
Existing NAB market head of Zofingen will become head of the SME business. Existing NAB CEO Roland Herrmann will hand over operational responsibility for the integration to Roger Suter as interim chief.
Suter will oversee NAB until the consolidation is wrapped up and then continue to serve as Credit Suisse (Schweiz) head of Region Central Switzerland.
The merger will take effect at the end of this November and is expected to complete in the second quarter of next year.
Credit Suisse confirmed that “a headcount reduction at NAB as well as the Swiss Universal Bank division of Credit Suisse is inevitable”, without revealing exactly how many would be affected.
Credit Suisse anticipates that the move will lead to gross cost savings of nearly CHF100m per year from 2022.
The bank intends to reinvest these savings in other intiatives such as hiring of additional relationship managers to meet the needs of private, corporate and institutional clients.
It will also use the savings in technology, digitalisation and marketing efforts.
Besides, Credit Suisse will launch a new digital offering and a future oriented branch concept at the end of October.
In Q2 2020, Credit Suisse reported a strong performance with pre-tax income increasing 19% and attributable net income surging 24% on a year-on-year basis.
