Share buybacks are not enough

As head of the insurer Prudential, he has his shareholders with a lush course win spoil. In the case of the Credit Suisse do not want him to succeed. This year alone, the stock has already lost about a third of its value.

So, Thiam is resorting to a tried-and-tested means to keep the investment community happy: share buybacks. On the occasion of the Investors day on Wednesday, the Bank announced that for the year 2019 share in the value of "at least 1 billion" buy back, in the best case it should be 1.5 billion Swiss francs. A similar program provides, the Bank investors for 2020 in view and fulfilled in this point, the expectations of analysts.

The announced special distributions are expected to provide to the stock exchange, but best if for a short straw fire. A fundamental reassessment of the Credit Suisse share, Thiam is not achieved.

investors have every reason to be cautious. Because in the United States, the economy has passed its Zenith long ago. The concern for a slowdown in this key market and also the share of the US big banks suffer.

Particularly bad as it got the share of Credit Suisse. Because your investment banking depends on in spite of all the restructurings as lead to the results. Because of investment banking, for example, the Asia Region is expected to record less profit than to compete in the 2015 Thiams.

The trading division, Global Markets still binds approximately as much capital as the highly profitable Switzerland-a unit and will earn this year, probably even less than half than in 2015. However, the investment banking Thiam shy away from further cuts.

investors ' Concerns that a global slowdown is expected to meet the investment banking division of Credit Suisse, Thiam with a share buyback program with a purchase. For this purpose, he must show clearly how the Bank in the future across all lines of business revenue to increase. But the message loses the investors ' day, not a word.

Created: 12.12.2018, 10:06 PM