Credit Suisse, one of Europe’s largest banks by assets, announced Wednesday it is replacing its chief executive and will undertake a “comprehensive strategic review” in the wake of mounting losses, the latest attempt to turn the beleaguered bank around after numerous scandals and years of instability.
Thomas Gottstein, who took over as chief executive in early 2020 after his predecessor Tidjane Thiam was embroiled in a spying scandal, announced he would step down as CEO after the bank posted a second-quarter loss of $1.66 billion, much worse than analysts expected.
Gottstein, who cited “personal and health-related” reasons for leaving, said the results were “disappointing,” particularly from the investment bank division.
Issues including higher litigation costs, the volatile geopolitical situation following Russia’s invasion of Ukraine and monetary tightening by central banks to curb inflation all contributed to the loss, Credit Suisse said.
Ulrich Körner, the bank’s asset management lead, will take over from Gottstein on Monday, the bank announced.
Credit Suisse also announced a new “comprehensive strategic review” to cut costs, turn business around and return to profitability, suggesting harsh cuts to its investment bank.
Credit Suisse chairman Axel Lehmann said the goal is to “become a stronger, simpler and more efficient Group with more sustainable returns.”