The Logo of Credit Suisse Group In Davos, SwitzerlandYou can find more information at Monday, Jan. 16, 2023.
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The Qatar Investment Authority Is the second-largest shareholder in Credit Suisse After having doubled its stake in the embattled Swiss According to a U.S. filing, the lender was filed late last year. Securities And Exchange Commission.
The QIA — Qatar’s sovereign wealth fund — initially began investing in Credit Suisse During the financial crisis. NowAccording to the filing, the bank owns 6.8%. FridayIt is second only after the The purchaser of 9.9% stake in the Saudi National Bank Last year, as part of a $4.2 Billion deal Funding a huge strategic overhaul requires capital raising.
Combined Owned by a whopping 3.15% SaudiFamily-based firm Olayan Financing CompanyAround a fifth (5%) of the stock is now owned. Middle Eastern investors, Eikon Data indicates.
Credit Suisse It will release its full-year and fourth-quarter earnings on Feb. 9 and has Already projected to reach 1.5 billion Swiss Loss in franc ($1.6 million) The ongoing restructuring has resulted in the fourth quarter. The The shake-up is intended to address persistent underperformance at the investment bank as well as a number of compliance and risk failures.
CEO Ulrich Koerner CNBC interviewed the World Economic Forum In Davos The bank announced last week that it is moving forward with its transformation efforts and has witnessed a significant decrease in client outflows.
The Investment from the Middle East Major U.S. Investors Harris Associates And Artisan Partners Sell their shares in Credit Suisse. Harris At 5%, it is still the third largest shareholder. However, its stake has been reduced significantly in the past year. Artisan It has completely reneged on its position.
‘Final pivot’
Earlier This month Deutsche Bank It resumed its coverage on Credit Suisse With a “hold” Rating, noting the strategy update was announced in October followed rights issue December They were the beginning of the group’s existence. “final pivot towards more stable, higher growth, higher return, higher multiple businesses.”
“While strategically largely the right measures have been announced in our view, the execution of the group’s transformation requires time to lower costs, regain operational momentum as well as reduce complexity funding costs. Hence, we expect subdued profitability, below its potential, even by 2025,” Benjamin GoyThe head of European Financial research Deutsche Bank.
As So, he stated that Credit Suisse’s The valuation was “not cheap based on earnings anytime soon.”
‘More Art is more important than science
Central To Credit Suisse’s The new strategy involves the spin-off its investment bank to create CS First BostonFormerly Credit Suisse Board member Michael Klein.
In Note from earlier in this month Barclays Co-Head This is European Banks Equity Research Amit Goel Be characterized Credit Suisse’s earnings estimates as “more art than science,” Argument that the details of the earnings contribution of the exited businesses are not complete.
“For Q422, we will be focused on what is driving the losses (we found it quite hard to get to c.CHF1.1bn of underlying losses in the quarter), whether there are any signs of stabilisation in the business, and if there is more detail on the restructuring,” He added.
