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June 29, 2022

Credit Suisse outlines plans to bolster wealth unit in revamp

Credit Suisse has outlined a plan to strengthen its focus on its wealth management unit and cut costs through simplifying technology as part of its turnaround strategy to move past scandals and losses in the last two years.

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Analyze opportunies within the wealth management market in APAC

GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
Enter your details here to receive your free Report.

The Swiss bank intends to grow the wealth unit by focusing on priority markets such as Hong Kong and Singapore and to enhance risk management across the group.

Credit Suisse said it plans to save around $836m (CHF800m) from centralising technology, including CHF200m this year and the next, with an additional CHF400m over the medium term.

Last year, the bank outlined a company-wide cost-savings target of over CHF1bn, which it plans to accelerate now.

Credit Suisse CEO Thomas Gottstein and chairman Axel Lehmann are working to regain investor confidence after the bank after the bank has been caught up in back-to-back scandals which weakened its key businesses and led to an exodus of resources.

Gottstein confirmed that the bank will move ahead with its plan to shrink the investment bank and shift about $3bn of capital to the wealth management unit, according to a report by Bloomberg.

He added that this strategy may be slowed down after clients cut back leverage more than expected in the past quarters.

Gottstein said: “In principle, our plan continues to be to grow our lending book in wealth management.

“But given what happened during the last couple of quarters, it’s clearly a slightly different basis from where to grow.”

Credit Suisse expects to double the client assets under management in its wealth unit for private market investments and expand programmes that focus on sustainability and the next-generation of wealth inheritors.

The bank also anticipates mid- to high-single-digit growth in lending to rich clients by 2024, while rising interest rates are set to add CHF800m in income.

Free Report
img

Analyze opportunies within the wealth management market in APAC

GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
Enter your details here to receive your free Report.

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