Credit Suisse Hit By Key Private Bank Resignations In Hong Kong
Credit Suisse is struggling to retain talent as it battles weak staff morale in the face of multiple crises.
(Bloomberg) -- Credit Suisse Group AG has been hit by two senior private banker resignations in Hong Kong as the Swiss lender targets a global overhaul following a wave of scandals that triggered billions of dollars in losses.
Echo Hui, a managing director on the China team resigned this week, according to a person familiar with the matter who asked not to be named discussing private information. Jeff Tsang, a managing director and team leader of the Hong Kong team, has also communicated his plans to leave though it’s unclear if his resignation has been accepted, people familiar with the matter said.
Tsang declined to comment. A Credit Suisse spokesperson said the lender doesn’t comment on personnel moves, but forwarded a statement from Benjamin Cavalli, the head of the firm’s Asia Pacific wealth business. “In spite of all these rumours flying around that Credit Suisse is pulling back or pulling out of China, China is a long-term play for us,” he said in the statement.
The Swiss bank is struggling to retain talent as it battles weak staff morale with its share price at record lows and a looming revamp of mainly its investment bank. It’s weighing cutting thousands of roles globally, to slash its overall cost base by an additional $1 billion in an overhaul led by its new chief executive officer, Ulrich Koerner.
Credit Suisse has held meetings in Singapore this week to review its long-term plans including for its business in mainland China. Senior executives at Credit Suisse have raised doubts on the benefits of building out its existing securities activities and expanding wealth management in the country, Bloomberg News previously reported.
A strategy review by the bank as recently as November last year, pinpointed Asia wealth -- particularly in mainland China, Hong Kong and Singapore -- as a focus area to expand in.
Earlier this year, two senior private bankers in the Greater China region also left. The bank has faced delays in getting approvals for some of its China operations, after it lost nearly half of the senior personnel management at its China securities ventures in recent months.
A slump in trading activity in Asia this year, in part driven by a slowdown in the Chinese economy, has also weighed on the private banking sector. The bank reported that adjusted revenue for its global wealth management business slid 15% in the first half of 2022 from a year earlier.
Even so, Credit Suisse also has plans to scale up its international private banking unit to strengthen its its high-net-worth client business, according to an internal memo seen by Bloomberg.
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.