By Joshua FranklinZURICH, July 17 (Reuters) - Credit Suisse <CSGN.S> begins
work this month on planning for its strategic priorities beyond
the Swiss bank's current set of targets, Chief Executive Tidjane
Thiam said in a memo to staff.
Credit Suisse aims to achieve its current capital, cost and
pre-tax income targets by 2018 but Thiam told staff preparation
will start in July on its 2018-2020 plan.
Thiam, who took over as CEO just over two years ago, sent
the memo after a two-day annual strategy break at the end of
June attended by the board of directors and executive board.
"Looking beyond 2018, we agreed there would continue to be
significant value creation opportunities available to a
restructured Credit Suisse, and that would translate into a
growing valuation of Credit Suisse as we continue to allocate
more capital towards businesses that will generate higher
returns and are more capital efficient," Thiam said in the memo
which was sent to staff on Friday and seen by Reuters on Monday.
"Over time, this will increase the size and proportion of
our capital allocated to businesses which attract a higher
market multiple, driving our valuation higher."
Credit Suisse confirmed the memo, which was reported earlier
Thiam said the board normally holds the strategy away day at
the end of August but this year decided to hold it earlier "so
that its conclusions could inform the preparation of the
2018-2020 plan, which kicks off in July".
Since joining from UK insurer Prudential <PRU.L> in
mid-2015, Thiam has refocused Credit Suisse away from investment
banking, and looked to make wealth management and private
banking its core business.
He has also cut costs by several billion dollars and raised
around 10 billion Swiss francs ($10.4 billion) in fresh capital.
"With the progress achieved to date, we believe we are on
track to deliver on our strategic ambitions," Thiam said.
Since Thiam laid out his strategy blue-print in October
2015, Credit Suisse's share price is down by around a third with
the bank posting a 2.7 billion franc loss last year.
For the first quarter of 2017 Credit Suisse reported net
profit of 596 million francs, its highest quarterly profit since
the restructuring. [nL8N1HY0QD]
Zurich-based Credit Suisse, Switzerland's second-biggest
bank after UBS <UBSG.S>, reports second-quarter results on July
($1 = 0.9613 Swiss francs)
(Editing by Susan Thomas)
((firstname.lastname@example.org; +41 58 306 7336;))
Keywords: CREDIT SUISSE GP STRATEGY/