BloombergCredit Suisse Group AG cut its main profitability target for this year and next, as trade tensions and negative interest rates cloud the outlook after a three-year restructuring. Credit Suisse is not alone as banks across Europe struggle to reach targets, with interest rates likely to stay negative for the foreseeable future. The bank is pinning its wealth management growth on a strategy of cross-selling investment banking services to ultra-high-net-worth clients while making better use of technology for more modestly rich customers. Credit Suisse said it seeing pressure from negative rates at the Swiss Universal Bank, the lender’s largest unit by profit. With negative interest rates of 0.75 percent on deposits in Switzerland, the bank has begun to pass on the costs to its wealthy clients, while it is also selling real estate to mitigate the effects.

Source: Taipei Times December 11, 2019 15:56 UTC