Credit Suisse promotes veteran to boost ailing investment banking unit
Credit Suisse is hoping to give its embattled investment banking arm a new lease of life after appointing a company veteran to take charge.
David Miller, who currently serves as the Swiss bank’s global credit boss, is set to take over as the chief of its investment banking and capital markets unit.
A quiet market for initial public offerings (IPO) and mergers and acquisitions (M&A) has been partly blamed for the slowdown in the lender’s investment banking division, which swung to a pre-tax loss during the third quarter.
Read more: UK business confidence slumps to seven-year low
A drop in advisory fees for M&A contributed to the six per cent drop in third-quarter revenue within the division.
Miller, who joined Credit Suisse almost two decades ago, is set to replace James Amine, who will take on a newly-created role as head of private credit opportunities.
Read more: TSB facing heavy criticism after investigation into IT meltdown
Chairman Urs Rohner said today: “Credit Suisse will greatly benefit from his deep experience across capital markets and investment banking, combined with his broad client relationships both in the U.S. and internationally.”
A person familiar with the situation told Reuters: “Some deals fell apart, others we missed out on. It is the right time to have a fresh pair of eyes take a look.”
Analyst Javier Lodeiro at Zuercher Kantonalbank added: “We are positive that a new CEO is coming. He will lead the turnaround of this unit.”