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PRESENTS

A PLAN TO DOUBLE
THE SHARE PRICE

Our Vision

“Together we will propel Credit Suisse to the forefront of modern private banking.

 

Combining this top brand with new technology will bring exceptional value to all stakeholders.”

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Rudolf Bohli – Founder RBR

Key elements of the plan

Credit Suisse is a conglomerate, each business can be considered on a stand-alone basis.
Post subprime crisis, the costs of inter-divisional synergies outweigh the benefits.

Split the Conglomerate

1. A world-class Private and Business Bank

2. An independent Investment Bank

3. An independent Swiss Asset Manager

Technology disrupts every industry and banking will be no exception.
The traditional wealth management business must be supported with state-of-the-art technology and processes.

Combine Heritage & Tech

Construct a new dedicated private banking IT platform, independent of any legacy systems

Ways to

Participate

Are you a Swiss resident?

Issuer: Neue Helvetische Bank

RBR Pure Swiss Banking Tracker

This certificate is actively managed by RBR Capital Advisors, tracking the performance of Credit Suisse Group AG shares and applying a leverage of up to 150% of the Net Asset Value

ISIN: CH0389606010

Valoren: 38960601

Link to the Fact Sheet

RBR Pure Swiss Banking Market Neutral Tracker

The Certificate is actively managed by RBR Capital Advisors, long Credit Suisse Group AG shares and short a basket of European banking conglomerates with a gross exposure of up to 300% of the Net Asset Value

ISIN: CH0389605996

Valoren: 38960599

Link to the Fact Sheet

Please indicate from which country you are a resident of and if you are a Qualified Investor.

Back to the roots of pure wealth management

Questions & Answers

What IB competences are relevant to Wealth Management clients?

The Ultra High segment is the most likely to require services that cannot be provided by the rest of the Universal Bank. The Ultra High segment is also one of the most price sensitive where margins have been under pressure and competition is the fiercest. Nonetheless, it is fair to say that funding and leveraging their portfolios (core shareholdings) can require some financial engineering commonly found within IB.

Is First Boston 2.0 a viable business on a stand-alone basis?

The negative impact of First Boston on the share price outweighs any cross divisional benefit. This will not change. Very few private clients are prepared to pay the price of a vertically integrated bank. Asian clients are always referred to as the driving force behind such concentrated models but in reality very few real win/win transactions actually take place.

A lot of down-sizing has taken place and needs to continue especially within the Global Markets unit.  We recommend listing FB in the US where the capital requirements are substantially below those of Switzerland. We are confident that restructuring measures associated to a US listing will enable FB to be profitable again and have a return on equity in the low/mid double digits to start with.

What are the CS’s biggest problems from your point of view?

The conglomerate structure has all the disadvantages associated with such a model as well as the old IT infrastructure.

Why is digitization so important in your eyes?

Banks have been dematerialised ever since ATMs have replaced cashier counters. Bank account holders no longer visit their bank (let alone their banker). The millennials and the generation Y are magnifying the trend.
The winners over the past decade have been only “clicks”. Banking will be the next industry to be disrupted.

What do you like about the CS today?
  • The Brands. Credit Suisse is a very powerful one but also First Boston still carries clout in the United States and elsewhere. Reviving First Boston as a standalone brand will be relatively easy.
  • The culture and the people. There is a Swiss way to tackle private and wealth management. It is part of the DNA of the firm and a great asset going forward.
  • The Swiss Universal Bank at the heart of the organisation. Not so long ago, spinning-off that division was being acted-upon. It is comprised of a number of departments that will be essential once the disentangling of the conglomerate will have taken place.
Why is the time right to float the IB business?
  • The timing wasn’t right before because distressed assets (SRU) were at a multiple of what they are now.
  • Internal resistance was higher and the helm of the bank was in the hands of ex-investment bankers.
  • The synergies between WM and IB haven’t materialised.
Isn’t CS Asset Management too small to be able to operate independently and successfully?

There are many independent companies of that size. CSAM domestically isn’t a small player and its position can be further consolidated.

What are the biggest problems in wealth management?

The current structure is not client focused and relies on old technology. The unique brand, terrific people and the large customer base have to be combined with state-of-the-art technology. Together, this creates huge opportunities.

What immediate changes do you propose?

Refocus on Wealth Management and the Swiss Universal Bank while separating them from the Investment Bank and the Asset Management divisions. Stop spending on upgrading antiquated IT systems. And deploy a dedicated team for a new software platform on a green field.

Why don’t you believe in the new strategy that CEO Thiam launched not so long ago?

The strategy is producing some results but it cannot deliver the results shareholders are entitled to expect from a successful bank. Credit Suisse currently has a return on equity of below 4% and guides for 6% to 8% for the coming years; much lower than their direct peers.

Given the regulatory constraints now imposed on banks and the business shifts that have occurred, Credit Suisse has no other choice than to concentrate on what it is renowned for and where it can bring true value ad in the future for both the company and its shareholders.

Do you demand personnel changes?

No. The management team has the necessary skills to adopt our plan quickly.

Do you have direct contact with the management of CS?

Yes, we have been in touch with the CEO and Chairman since early September 2017.

What does RBR want to achieve?

Ideally, an agreement by all main shareholders, the board and management about our plan.

As an investor, why should I follow you?
  • Since we have launched our Specialised Purpose Vehicle investing in activist cases (Dec. 2014), we have had a return of 130%+ (37% on an annualised basis –  July 2017). So we believe we have demonstrated our ability to identify attractive opportunities.
  • CS will be the third Swiss listed company upon which we focus. We understand the local market, the establishment and are familiar with the past and present management of the firm.
  • We invest alongside our clients, our senior staff is invested in the vehicle and believe in the strategy.
  • Shareholders, big or small, are disgruntled. There is a willingness to see change taking place and fast.
  • Switzerland has played a key role in wealth management since decades. It is normal to “reload” the business using the Swiss heritage and what better name than Credit Suisse to impersonate it.
What is your background?

RBR Capital Advisors AG, founded in 2003, is an investment management boutique specializing in investments in continental European equities, including long-short and long-only strategies. We are committed to generating double-digit returns for our investors in the equity markets with a commensurate amount of risk taken. We achieve this through our rigorous, robust and time-tested bottom-up research approach which involves several hundred company management meetings per year. We set very high standards for what we do and as a consequence we align ourselves with our investors. Our strengths have been externally recognized in a number of industry awards, in particular for long-term performance, such as EuroHedge and HFM Awards. We are proud of our long-term track record.

How do you see your role?

We are merely the much needed catalyst for change. We identify situations and work on solutions. We are active shareholders. We cannot get things done alone, other shareholders need to agree with our recommendations and support us.

Contacting us

Please specify in your mail if you are an institutional investor or part of the media. For regulatory purposes only mails from these two segments shall be answered.
Thank-you for your kind understanding.

Image Credits
First Image – Thomas Wolf, www.foto-tw.de, Credit Suisse Zürich, desaturated, dark filter applied partially, cropped, CC BY-SA 3.0 DE
Second Image – “” (CC BY 2.0) by eflon, desaturated, dark filter applied, cropped
Third Image – No Licence required, desaturated, dark filter applied, cropped
Fourth Image -“||||||/||||||” (CC BY 2.0) by Thomas Leuthard (2008-2017), dark filter applied, cropped

Picture of Rudolf Bohli – Christina von Prohaska

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