Credit Suisse Private Bank Bonuses Said to Outpace Rest of Firm
Credit Suisse Private Bank Bonuses Said to Outpace Rest of Firm
(Bloomberg) -- Credit Suisse Group AG plans to increase bonus payments for its wealth managers at more than twice the bank average as growth outpaces other businesses, according to people with knowledge of the matter.
The Zurich-based bank’s main wealth management business, led by Iqbal Khan, is seeing a 7 percent increase in the bonus pool from last year, three people familiar said, asking not to be identified as the increases are private. That compares with a gain of about 3 percent across the rest of the bank.
The lender, which in 2016 awarded 3.09 billion Swiss francs ($3.26 billion) in incentive pay, is in the final stretch of a restructuring plan to focus on managing money for ultra-high net worth individuals. As part of that shift, the bank is reducing its reliance on trading-related businesses that came under pressure because of higher regulatory costs and competition from U.S. peers that emerged faster from the crisis.
“We compensate our employees competitively,” the bank said in a statement. “Credit Suisse has made significant investments across both our investment banking and private banking franchises in 2017.”
The bank’s international wealth management unit, which covers Europe and emerging markets outside Asia, posted a pretax profit of 1.35 billion francs ($1.42 billion) last year on revenue of 5.11 billion francs, compared with profit on that measure in 2016 of 1.12 billion francs and revenue of 4.7 billion francs.
To contact the reporters on this story: Jan-Henrik Förster in Zurich at jforster20@bloomberg.net, Stefania Spezzati in London at sspezzati@bloomberg.net, Patrick Winters in Zurich at pwinters3@bloomberg.net.
To contact the editors responsible for this story: Dale Crofts at dcrofts@bloomberg.net, Ambereen Choudhury at achoudhury@bloomberg.net, Christian Baumgaertel
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