Credit Suisse still aims to report profit of SFr8.2bn ($6.3bn) in 2007 as the Swiss lender strives to implement its “one bank” strategy.
Switzerland’s second largest bank on Tuesday maintained its previously announced target for net income, which includes SFr200m in savings from the changes, as it laid out targets for each of its three banking divisions under the new structure.
In 2007, the bank expects pre-tax profit of SFr4bn in investment banking, SFr4.6bn in private banking, and SFr1.1bn in its asset management division.
Credit Suisse in January adopted a single brand across its banking operations, dropping the Credit Suisse First Boston monicker used by its investment bank in an effort to cut costs across the business and boost growth.
It has predicted that the integration will elevate net profits by about SFr1bn a year from 2008.
The insurance division, Winterthur, will report separately. Previously split into the life and pensions, and the non-life divisions, Winterthur will now report as one.
The Swiss lender declined to say more about its plans for Winterthur, now regarded as non-core and expected to be spun off later this year.
Oswald Grubel, Credit Suisse chief executive, in February repeated that preparations for an initial public offering of the insurance arm would be finalised by mid-year but would not be drawn on when such a process might take place.
Jaques-Henri Gaulard, research analyst at Merrill Lynch, in a note called the changes an “accounting restatement,” pointing out that private banking lost out in the reshuffle as business lines were transferred to asset management and the investment bank while it gained the lossmaking US private client business.
Shares in Credit Suisse lost 0.9 per cent in European morning trade to SFr 74.45.
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