Credit Suisse CEO Thomas Gottstein resigned today and is to be replaced by Ulrick Korner, effective August 1, the bank said in a statement.

Thomas Gottstein's departure comes after the bank reported first-half losses of CHF 1,866 million (EUR 1,913 million) and also plans to amend its strategic plan to reflect a medium-term reduction in costs to below CHF 15.5 billion (EUR 15,881 million). The bank wants to save between CHF 1 billion and CHF 1.5 billion in annual structural costs by 2024.

"Our results for Q2 2022 are disappointing, especially in investment banking," Thomas Gottstein admitted, with Credit Suisse posting a profit of 253 million francs in Q2 2021.

The outgoing CEO justified these results with the combination of the geopolitical situation following Russia's invasion of Ukraine, monetary tightening by major central banks in response to inflation, and customer risk aversion.

Additionally, the institution is going through troubled times with the departure of Gottstein's predecessor, Tidjane Thiam, who left Credit Suisse in 2020 after several senior positions were the subject of internal investigations. Also António Horta-Osório, former chairman, left the institution after violating quarantine rules imposed by the covid-19 pandemic, as did vice chairman Severin Schwan, due to pressure from major shareholders.

On the other hand, the collapse of the capital companies Archegos and Greensill in 2021 is also affecting Credit Suisse, and last month a Swiss court also fined the bank more than two million dollars for not preventing money laundering associated with a Bulgarian criminal network more than 15 years ago. (Sapo)