Credit Suisse Credit Suisse  

Credit Suisse Group is a Swiss multinational financial services holding company, headquartered in Zürich, that operates the Credit Suisse Bank and other financial services investments. The company is organized as a stock corporation with four divisions: Investment Banking, Private Banking, Asset Management, and a Shared Services Group that provides marketing and support to the other three divisions.

Credit Suisse was founded by Alfred Escher in 1856 under the name Schweizerische Kreditanstalt (SKA, English: Swiss Credit Institution) in order to fund the development of Switzerland's rail system. It issued loans that helped create Switzerland's electrical grid and the European rail system. It also helped develop the country's currency system and funded entrepreneurship. In the 1900s Credit Suisse began shifting to retail banking in response to the elevation of the middle-class and the growing popularity of savings accounts. Credit Suisse partnered with First Boston in 1978. After a large failed loan put First Boston under financial stress, Credit Suisse bought a controlling share of the bank in 1988. In the 1990s, Credit Suisse acquired the Winterthur Group, Swiss Volksbank, Swiss American Securities Inc. (SASI) and Bank Leu among others. In the year 2000, it added the U.S. investment firm Donaldson, Lufkin & Jenrette.

The company restructured itself in 2002, 2004 and 2006. It was one of the least affected banks during the global financial crisis, but afterwards began shrinking its investment business, executing layoffs and cutting costs. During the period between 2008 and 2012, Germany, Brazil, and the United States began a series of investigations into the use of Credit Suisse accounts for tax evasion. In May 2014, the company pleaded guilty to decades of conspiring to help US citizens avoid taxes, and agreed to pay $2.6 billion in fines.

In 2014, Credit Suisse had 888.2 USD Bn of assets under management (AuD) according to the Scorpio Partnership (an increase of 9.5% on 2013).

Corporate structure

Credit Suisse headquarters at Paradeplatz in Zürich.

Credit Suisse Group AG is organized as a joint-stock company registered in Zürich that operates as a holding company. It owns the Credit Suisse bank and other interests in the financial services business. Credit Suisse is governed by a board of directors, its shareholders and independent auditors. The Board of Directors organize the Annual General Meeting of Shareholders while investors with large stakes in the company determine the agenda. Shareholders elect auditors for one-year terms, approve the annual report and other financial statements, and have other powers granted by law. Shareholders elect members of the board of directors to serve a three-year term based on candidates nominated by the Chairman's and Governance committee and the Board of Directors meet six times a year to vote on company resolutions. The Board sets Credit Suisse's business strategies and approves its compensation principles based on guidance from the compensation committee. It also has the authority to create committees that delegate specific management functions.

Credit Suisse has two divisions, Private Banking & Wealth Management and Investment Banking. A Shared Services department provides support functions like risk management, legal, IT and marketing to all areas. Operations are divided into four regions: Switzerland, Europe, the Middle East and Africa, the Americas and the Asian Pacific. Credit Suisse Private Banking has wealth management, corporate and institutional businesses. Credit Suisse Investment Banking handles securities, investment research, trading, prime brokerage and capital procurement. Credit Suisse Asset Management sells investment classes, alternative investments, real-estate, equities, fixed income products and other financial products.

Financial products

Сredit Suisse endorses a strategy called bancassurance of trying to be a single company that offers every common financial services product The investment bank is intended for companies and wealthy individuals with more than 50,000 euro.

Credit Suisse developed the CreditRisk+ model of risk assessment in loans, which is focused exclusively on the chance of default based on the exogenous Poisson method. As of 2002 about 20 percent of Credit Suisse's revenue was from its insurance business it gained through the 1997 acquisition of Winterthur. The investment bank's insurance products are primarily popular in the domestic market and include auto, fire, property, life, disability, pension and retirement products among others. Historically 20–40 percent of the bank's revenue has been from private banking services, one of its higher profit-margin divisions.

Credit Suisse produces one of the six hedge funds following European stock indices that are used to evaluate the performance of the markets. The investment bank also has a 30 percent ownership in hedge fund investment firm York Capital Management. York sells hedge funds independently to its own clients, while Credit Suisse also offers them to private banking clients. Credit Suisse manages the financial instruments of the Dow Jones Credit Suisse long/short equity index (originally called Credit Suisse/Tremont Hedge Fund Indexes).

According to a 2011 article in SeekingAlpha, Credit Suisse's investment managers favor financial, technology and energy sector stocks. The bank's head of equity investments in Europe said the team focuses on "value with an emphasis on free cashflow." She also has an interest in companies undergoing management changes that may influence the stock price. According to a story in the Wall Street Journal, the head of Credit Suisse's International Focus Fund keeps a portfolio of only 40–50 stocks, instead of the industry-norm of more than 100. Credit Suisse publishes its investment advice in four publications: Compass, Viewpoints, Research and the Credit Suisse Investment Committee Report.

Reputation and rankings

Credit Suisse is a member of Wall Street's bulge bracket, a list of less than a dozen of the largest and most profitable banks. The company has been identified as one of the world's most important banks, upon which international financial stability depends. The bank is also one of Fortune Magazine's most admired companies.

Credit Suisse has been recognized as the world's best private bank by Euromoney's Global Private Banking Survey and as the best European Equity Manager by Global Investors. In polls by Euromoney, it has been ranked as the top private bank and the best bank in Switzerland. As of 2004, Credit Suisse was first in volume of high-yield transactions, second for corporate high-yield bond insurance and third for IPO underwriting. The Securities Data Company ranked Credit Suisse as the fourth best place for financial advice for mergers and acquisitions in the US in 1995 and sixth for domestic equity issues. Credit Suisse has been recognized by the Asset Triple A Awards. In 2005 Credit Suisse was ranked as the second best prime broker by Institutional Investor.

Work environment

Credit Suisse is more internationally minded than most European banks. According to WetFeet's Insider Guide, Credit Suisse offers more travel opportunities, greater levels of responsibility and more client interaction than new employees get at competing firms, but is known for long hours. Analysts report 60- to 110-hour work-weeks.

Roles and responsibilities are less stringent and the environment is pleasant despite hours being "the most grueling on Wall Street." Vault's Insider's Guide reached similar conclusions, noting above-average training, executive access and openness matched with reports of 80- to 100-hour work-weeks.

Details

Status
Foundation Year 1856
License
Trading Platforms
Reliability Rate AAA
Authorised Capital
Brocker Fee
Exchange Fee
Withdrawal Fee
Minimum Deposit
Phone +41 (0)848 880 844
Address Paradeplatz 8 Zürich, Switzerland
Website http://www.credit-suisse.com/

User Reviews

   Yaro    2016/12/28 10:51   

Global Wealth Report from Credit Suisse is rather strange. You can read it here: https://www.credit-suisse.com/ch/en/about-us/research/research-institute/publications.html


   Delvina    2017/2/27 10:55   

The intergace is very difficult to understand. It is not good for RAM either. And there are no indicators that I trade. I have not found them.


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