Credit Suisse Group AG plans to return half its net income to shareholders through buybacks or special dividends, as it seeks to reward investors who stumped up capital to bolster the bank’s finances.
The lender confirmed profit targets for next year for key divisions, including the Swiss Universal Bank, International Wealth Management and Investment Banking & Capital Markets, and Global Markets businesses, it said in an e-mailed release ahead of its investor day in London.
It stopped short of confirming a target at its Asia-Pacific (APAC) unit after losses at its markets unit.
After tapping shareholders for more than 10 billion Swiss francs (US$10.14 billion) in recent years, cutting thousands of jobs and selling risky assets, Credit Suisse is entering the final year of its restructuring.
It is outlining a payout target — which might not happen before 2019 or 2020 — to reward shareholders who have stayed with the bank.
The bank’s more market-dependent businesses continued to see trading conditions in the fourth quarter that were “broadly similar” to those in the third, with volatility remaining at historically low levels and some recent widening of spreads in the high-yield market.
This is weighing negatively on the performance of its Global Market and APAC markets, with the bank saying it expects an adjusted pre-tax loss in its APAC markets business broadly in line with that of the prior quarter.
For 2019 and 2020, Credit Suisse sees a cost base of between SF16.5 billion and SF17 billion.
Credit Suisse is also betting on technology, where it sees the potential for cost savings.
“For example, we aim to implement more robots and to increase the share of operating systems on the cloud,” the bank said
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