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Pressure had been mounting on current Chief Executive Thomas Gottstein for months over the scandals and losses racked up during his two-year tenure that have hammered shares and angered investors.
In recent months some investors had called for Gottstein to be replaced, but the bank had resisted.
News of a strategic review that will further curb its investment banking operations came as Credit Suisse posted a 1.59 billion Swiss franc ($1.65 billion) second-quarter loss, badly missing market expectations.
Analysts had expected a net loss of 206 million francs, according to a consensus of 19 estimates compiled by the lender, which had warned in June of another quarterly loss as volatility and weak client flows hit its investment bank.
Its CET1 equity ratio stood at 13.5% of risk-weighted assets, hitting its near-term target of 13.5% and nearly at the 13.6% the market expected. That was below its 2024 target for above 14% and its first-quarter CET1 ratio of 13.8%.
“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,” outgoing Chief Executive Thomas Gottstein said.
Credit Suisse had described 2022 as a “transition” year in which it is trying to turn the page on costly scandals that prompted a near-total reshuffle of top management and a restructuring seeking to curtail risk-taking, particularly in its investment bank, while bulking up wealth management.
It has sought repeatedly to dampen speculation that it could be acquired or broken up amid sector consolidation.
In June executives said Credit Suisse may “temper” some of its key growth initiatives in wealth management as it focuses on a risk turnaround and bolstering technology.
Swiss rival UBS on Tuesday posted a $2.1 billion second-quarter profit, smaller than expected as turmoil in financial markets hurt its investment banking and wealth management businesses.
($1 = 0.9614 Swiss francs)
