Switzerland-headquartered Credit Suisse last week made a number of announcements relating to its Annual General Meeting (AGM), first quarter 2022 earnings, and changes across its executive leadership.
CEO of the Asia Pacific region, Helman Sitohang (pictured right) announced plans to retire from his current post and the bank’s Executive Board, from June. His office will be replaced by Singapore-based Edwin Low (pictured left), whose current leadership remit entails being co-head of Investment Bank APAC, co-head of Investment Banking & Capital Markets (IBCM) APAC, and CEO for Southeast Asia.
Having joined the bank in 1998 from Bankers Trust, Sitohang commenced his career with Credit Suisse as part of the Indonesian coverage team, before taking on more senior responsibilities across the Investment Banking division. In 2014, he was appointed as CEO of the APAC business, and went on to become the longest-serving leader in the region.
From June, Sitohang will remain with the bank, but he will transition into an advisory capacity, assuming the role of senior advisor to Group CEO Thomas Gottstein. His new post will focus on core clients and strategic development across the Asian region, which constitutes an important growth market for the bank.
“I have decided to focus my efforts on developing our strategy and key client relationships…We have established a leading franchise in APAC, a deep bench of talent and a strong risk culture as a solid foundation for our next phase of growth, and I’m delighted that Edwin Low will take on the role of APAC CEO effective June 1, 2022. We have worked together over many years and I have no doubt that he will lead the bank capably to successfully execute on our strategy in APAC,” Sitohang shared in a note to media.
Incoming CEO, Low, has worked at the bank for 26 years, originally having joined as a first-year associate from Schroders where he was a M&A banker. During his tenure, he has taken on various senior leadership roles within the business including Head of Singapore and Malaysia Coverage, and Head of Corporate Finance for Southeast Asia. In addition to his new appointment, he will join the Executive Board of Credit Suisse Group AG and Credit Suisse AG.
The bank revealed other new appointments, including that of Francesca McDonagh as CEO for EMEA, Markus Diethelm as general counsel, and the 95.31% majority election of Axel P. Lehmann as the bank’s chairperson, which resulted from a vote during Credit Suisse’s AGM last Friday (April 29). All appointments are subject to regulatory approval.
Lehmann replaces António Horta-Osório who resigned in January from his position as Credit Suisse chairperson on the back of an investigation commissioned by the bank’s Board of Directors into an alleged evasion of Covid-19 quarantine rules. The bank also announced last week the departure of Group CFO, David Mathers, who plans to pursue alternative external career opportunities, as reported by sister publication, CorporateTreasurer.
News of the executive shake-up arrived alongside publication of the bank's earnings for the first quarter of 2022, which revealed a net group revenue decrease of 42% year on year. The bank cited a challenging economic environment and overall market conditions, as well as changes in interest rate expectations, inflationary pressures and geopolitical tensions, as having impacted wider market conditions and its total business activity.
Business performance in Asia was also impacted, given that recent months have witnessed industry-wide headwinds from softer markets, a slowdown in China equities led by the real estate and technology sectors, and geopolitical concerns, all of which have affected regional enterprise. However, the continent remained a fairly resilient contributor to Credit Suisse’s overall global group net revenue in Swiss Franc, accounting for approximately 16 percent of total revenue generation for the quarter, just three percent down on its total contribution in 1Q21.
The bank has been involved in various marquee corporate transactions in the region over the past year, including KKR’s acquisition of Australia-based customer experience business, Probe Group, in October, and Mumbai-headquartered Axis Bank’s proposed USD 1.6 billion acquisition of Citibank’s Indian consumer businesses.
The bank continues to work to rebuild its reputation, after it was marred by several controversies. In October 2021, Credit Suisse agreed to pay approximately $475 million to UK and US authorities following a corruption scandal involving fraudulently misleading investors to contribute to the development of Mozambique’s tuna fishing industry through “tuna-bonds”. Some years before, departing CFO, Mathers, was specifically named in documents alleging him to have reviewed, approved, signed and certified Credit Suisse’s filings with the SEC that were said to contain materially false and misleading statements and omissions.
Credit Suisse declined to comment on specific queries relating to the announcements.
