Struggling Credit Suisse CEO, which has a tech hub in RTP, steps down

RESEARCH TRIANGLE PARK — Swiss credit said Wednesday that CEO Thomas Gottstein was stepping down after 2½ years on the job, as he announced “disappointing” results, plummeting revenue and a net loss in the second quarter.

The financial giant has a significant presence at RTP where it houses a technology hub which opened in 2019. The project was announced in 2017 and if over time Credit Suisse creates the promised 1,200 jobs, it will receive some $40 million in tax incentives.

Credit-Suisse says the hub provides business continuity, information technology and operational support services. He continues to hire in the Triangle with more than 20 job offers published.

These are the latest signs that the leading Swiss bank is not yet done with a series of problems in recent years.

The Zurich-based bank said Ulrich Koerner, whom Gottstein brought to its board from rival UBS last year, will take the helm from Monday.

Credit Suisse also announced a new “strategic review” which will aim, among other things, to reduce costs.

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Gottstein, a 23-year veteran of the bank, cited “personal and health considerations” weighing on his decision to hand over to Koerner, who also worked for Credit Suisse earlier in his career.

Overall, Credit Suisse posted a net loss of 1.6 billion Swiss francs (about $1.7 billion) in the second quarter, compared to a profit of 253 million francs in the quarter of the year. former. Revenue plunged 29% to 3.6 billion.

Overall, said Credit Suisse, “the combination of the geopolitical situation following Russia’s invasion of Ukraine and significant monetary tightening by major central banks in response to inflationary concerns has continued to drive increased volatility and client risk aversion so far this year.”

He also said the current market environment “has negatively impacted client business in both wealth management and investment banking.” These represent two of the most important operations of the bank.

Credit Suisse said widening credit spreads caused a loss of nearly a quarter of a billion dollars in its leveraged finance portfolio. He also cited provisions for legal costs.

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“Our results for the second quarter of 2022 are disappointing, particularly in investment banking, and were also impacted by higher litigation provisions and other adjusting items,” Gottstein said.

Credit Suisse has encountered a series of problems in recent years, including bad bets on hedge funds and a spy scandal involving UBS. In addition, a Swiss court fined the bank more than $2 million last month for failing to prevent money laundering linked to a Bulgarian criminal gang more than 15 years ago.

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