Funds News

Credit Suisse shrinks investment bank, focuses on wealth in overhaul

Nov 4 (Reuters) - Credit Suisse will shrink its investment bank and focus more on serving rich clients as part of an overhaul here designed to draw a line under a slew of scandals.

Here are the key points from the restructuring here

* By January 2022 reorganise into four divisions - wealth management, investment bank, Swiss bank and asset management - and four geographic regions - Switzerland, Europe, Middle East and Africa (EMEA), Asia-Pacific and Americas.

* Deploy an additional 3 billion Swiss francs in capital to the global wealth management division by 2024, an increase of 25%.

* Hire approximately 500 relationship managers over the next three years for the wealth management division and boost technology spend at the unit by around 60%.

* Target an increase in assets under management of around 200 billion Swiss francs to hit approximately 1.1 trillion francs by 2024.

* Cut the amount of capital allocated to the investment bank by more than $3 billion, or about 25%, by exiting most of its prime services business, which provides financing for trading clients such as hedge funds. (Reporting by Carmel Crimmins; Editing by Lincoln Feast.)