ZURICH (Aug 22): Credit Suisse has hired Deutsche Bank's Dixit Joshi as its chief financial officer, and promoted Francesca McDonagh to chief operating officer (COO), as the Swiss lender's new boss overhauls the top ranks.
Ulrich Koerner, the latest in a string of chief executives at Credit Suisse, is trying to put the bank back on track after years of scandal and losses.
Under the reshuffle, Joshi, who was the group treasurer at Deutsche Bank, will join on Oct 1. He previously worked at Credit Suisse from 1995 to 2003.
McDonagh, already announced as the chief executive officer of the EMEA region, representing Europe, the Middle East and Africa, will, as the COO, support Koerner in the steering and strategic development of the group, including operational and cost transformation, the bank said.
A Credit Suisse spokesperson said Joshi had already left Deutsche Bank. He replaces David Mathers, who is stepping down.
The Swiss bank also appointed Michael J Rongetti as the interim head of the asset management division, and said that all three would report to Koerner. Joshi and McDonagh will also join the bank's executive board.
Koerner, who took over the top spot last month, is expected to scale back investment banking and cut costs. The investment bank recorded a pre-tax loss of 1.12 billion Swiss francs (US$1.17 billion or RM5.25 billion) in the second quarter, and is expected to lose money again this quarter.
"We think that these new appointments are a step in the right direction towards stabilising the bank, and that the focus is now on the new strategy," Zuercher KB analyst Christian Schmidiger said in a note.
Francesco De Ferrari, who remains the head of the wealth management division, is also appointed as the CEO of the EMEA region, after serving in the role on an interim basis since January, the bank said.
The bank also appointed Michael Bonacker as the head of transformation, leading the operating model and cost transformation work.
Shares were indicated to open 0.3% lower, according to pre-market indications by bank Julius Baer.