Credit Suisse to lose second chief executive in three years

CREDIT Suisse is set to lose its second chief executive in three years as the bank lurches from crisis to crisis.

The Swiss bank is set to announce the departure of Thomas Gottstein after two and a half years in the role, The Wall Street Journal reported.

His expected departure comes as the historic European bank struggles to restore its reputation after a string of recent scandals.

Mr Gottstein has headed the bank since the start of the pandemic and presided over a series of costly mishaps, including the implosions of clients Greensill Capital and Archegos Capital Management in early 2021.

The mismanagement caused $5.5bn (£4.5bn) of losses.

Mr Gottstein was brought in to try to steady Credit Suisse after his predecessor Tidjane Thiam left in February 2020 over a spying scandal. The bank’s share price had also almost halved during Mr Thiam’s tenure.

However, Mr Gottstein has struggled to convince investors that Credit Suisse is on a solid footing.

Shares have plummeted by nearly 48pc in the year to date and are 62pc lower than pre-pandemic levels. Credit Suisse issued its third profit warning of the year in June. It blamed market volatility, the end of Covid stimulus and rising interest rates.

Detractors said Mr Gottstein did not have the international profile and experience of some of the previous chiefs.

It was rumoured in May that the board could oust Mr Gottstein over concerns that he could not deal with the bank’s issues.

He will be replaced by Ulrich Körner, the Financial Times reported. The Swiss-born banker is currently head of the group’s asset management arm, which he had joined from rival UBS in 2021. Last year, Sir António Hortaosório, the former boss of Lloyds Bank, was brought in as chairman to try to aid Credit Suisse’s turnaround but he left after breaching Covid rules.

It is not clear when Mr Gottstein will leave the bank, although the announcement could come as soon as today alongside its financial results, The Wall Street Journal said.

Credit Suisse declined to comment.