Combining this top brand with new technology will bring exceptional value to all stakeholders.”
Rudolf Bohli – Founder RBR
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.
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.
The conglomerate structure has all the disadvantages associated with such a model as well as the old IT infrastructure.
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.
There are many independent companies of that size. CSAM domestically isn’t a small player and its position can be further consolidated.
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.
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.
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.
No. The management team has the necessary skills to adopt our plan quickly.
Yes, we have been in touch with the CEO and Chairman since early September 2017.
Ideally, an agreement by all main shareholders, the board and management about our plan.
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.
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.
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