Credit Suisse Group’s new chief executive Tidjane Thiam signalled a strategy shake-up yesterday (July 23), designed to focus on banking for the world’s wealthy, particularly in Asia, and away from riskier securities activities.

The Swiss bank’s shares jumped more than seven per cent to a 15-month high, boosted by better-than expected second-quarter results including a net 14.2 billion Swiss franc ($15 billion) inflow into its private banking arm catering to the super-rich, said a report in the Gulf Daily News (GDN), our sister publication.

For the three months to June 30, Credit Suisse said net income reached 1.1 billion francs, compared with an average forecast of 783 million francs in a poll of six analysts.

In the same quarter last year, the bank had posted a 700 million franc loss due to penalties from a May, 2014 settlement with US authorities over tax evasion charges.

Former Prudential boss Thiam took over at the Zurich-based lender only three weeks ago.

Investors have been watching for any clues on his plans, as well as any hints of a widely-expected move to tap shareholders for additional capital.

Thiam said he was leading a strategic review and would set out a strategy before the end of the year.

He indicated he will focus on a move towards less volatile wealth management, where Credit Suisse is the fourth-biggest global player by assets after UBS, Morgan Stanley and Bank of America Merrill Lynch, according to wealth management consultant Scorpio Partnership.

“We will put the emphasis on the private banking and wealth management business because it’s more capital-light and (has) better returns,” Thiam said.

“But for that to be successful we also need an investment bank that is well performing.” - TradeArabia News Service