Zurich Credit Suisse bankers are enticing rich clients with higher-yielding bonds and deposits to try to make up for the recent outflow of CHF 84 billion as much as possible.
The head of wealth management, Francesco de Ferrari, has been reported to have mobilized his 1,800 relationship managers for a mass telephone campaign. For example, customers are offered deposits with bonus interest of five to six percent from a lower minimum amount, according to people familiar with it. Special bonds that yield a fixed interest rate of almost seven percent are also on offer.
Credit Suisse is struggling for stability in what is actually the least volatile business area and which, after its reorganization, is set to become the heart of the institution – managing funds for high-net-worth clients. When rumors falsely questioning the bank’s solvency circulated on the internet in October, many of these customers withdrew their funds. Within weeks, about ten percent of de Ferrari’s business was gone.
The bank’s shares hit record lows several times in the past week, but have recently stabilized slightly again. The share, which is listed in Zurich, is listed at just under three francs in the middle of the week.
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“We are in close contact with our wealth management clients as we implement our new strategy,” said a Credit Suisse spokesman. “Market headwinds create a volatile environment for our clients and we are fully focused on providing them with differentiated advice and solutions that are in line with market rates.”
De Ferrari, who only took office in January, is said to be under strong pressure from the chairman of the board, Axel Lehmann, and the head of the bank, Ulrich Körner, to restore the volume of assets under management. As part of the business figures for the fourth quarter on February 9, Credit Suisse is also likely to provide an update on assets under management.
More: Rapid price drop and increasing short bets – how Credit Suisse continues to come under pressure