Credit Suisse appoints Ulrich Körner as new CEO

Ulrich Körner is considered a restructuring expert Keystone / Salvatore Di Nolfi

Credit Suisse has named Ulrich Körner as its new chief executive officer, replacing Thomas Gottstein in a bid to shore up confidence. At the same time Switzerland’s second-largest bank says it is conducting a “comprehensive strategic review”.

Körner, 59, who used to work for management consultants McKinsey, is considered a restructuring expert in Switzerland. He will start his new job on August 1, Credit Suisse said in a statementExternal link on Wednesday.

“This is a challenging undertaking but at the same time represents a great opportunity to position the bank for a successful future and realise its full potential,” German-born Körner, who has German and Swiss citizenship, said in the statement.

Pressure had been mounting on Gottstein for months over major scandals and losses racked up during his two-year tenure that have hammered shares and angered investors.

On Wednesday Credit Suisse reported a net loss of CHF1.6 billion ($1.66 billion) in the second quarter, from a profit of CHF253 million in the quarter a year ago. Revenues plunged 29% to CHF3.6 billion.

“Our results for the second quarter of 2022 are disappointing, especially in the investment bank, and were also impacted by higher litigation provisions and other adjusting items,” Gottstein said.

When Gottstein took the helm in 2020, he promised a “clean slate” for the bank, which was recovering from an internal spying scandal that cost his predecessor Tidjane Thiam his job.

But troubles have only escalated. In 2021 the bank disclosed a $5.5 billion (CHF5.3 billion) loss from the unraveling of US investment firm Archegos and the collapse of $10 billion worth of supply chain finance funds. The events prompted management ousters, investigations, and a capital increase – followed by further losses and fresh legal cases.

‘Pivotal moment’

Credit Suisse brought in Körner in April 2021 to lead its newly separated asset management division following the collapse of the $10 billion worth of supply chain finance funds linked to insolvent financier Greensill Capital.

Körner returned to Credit Suisse from arch-rival UBS, where he most recently served as adviser to the CEO from 2019 to 2020. He ran UBS Asset Management from 2014 to 2019. Körner was previously a senior executive at Credit Suisse Financial Services and ran the Swiss business.

“I am delighted to welcome Ueli as our new Group CEO, to oversee this comprehensive strategic review at a pivotal moment for Credit Suisse,” Credit Suisse chairman Axel Lehmann said in the statement.

“Since becoming chairman and reviewing the bank’s portfolio with our newly refreshed board of directors, I have come to appreciate the world-class quality of our businesses. But we need to be more flexible to ensure they have the necessary resources to compete. Our goal must be to become a stronger, simpler and more efficient group with more sustainable returns.”

Credit Suisse sharesExternal link rose in early trading on Wednesday.