Credit Suisse Group AG Chief Executive Officer Ulrich Koerner said he still expects to return to profit in 2024, after warning of a significant loss this year as the lender undergoes a radical transformation.
(Bloomberg) — Credit Suisse Group AG Chief Executive Officer Ulrich Koerner said he still expects to return to profit in 2024, after warning of a significant loss this year as the lender undergoes a radical transformation.
Following record outflows in the final quarter of last year, deposits were “net positive” in January as the lender conducted an unprecedented outreach to clients, Koerner said in Bloomberg TV interview with Francine Lacqua.
Last year’s “results are unacceptable”, he said. “It will take some time and we have said we will make a loss in 2023, but from then on it will get better and better”, Koerner said, adding that the bank should be profitable by 2024.
Credit Suisse on Thursday reported its fifth straight quarterly loss as clients pulled more than 110 billion francs amid a restructuring that will see the lender spin out a large part of its investment bank. Koerner said he’s currently in talks with several potential investors about taking a stake in the spun-out business.
The bank also made significant cuts to the bonus pool and is creating a new culture around compensation, he said.
“The strategy is very simple. It needs to be in line with the results,” Koerner said. “The new culture when it comes to compensation in principle going forward will be, you make a profit, we pay a bonus. If you don’t, we pay very little or nothing.”
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