Credit Suisse hires Deutsche’s Joshi in leadership overhaul

Credit Suisse hires Deutsche’s Joshi in leadership overhaul

Credit Suisse (CSGN.S) has hired Deutsche Bank’s Dixit Joshi as chief financial officer and promoted Francesca McDonagh to chief operating officer 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, currently group treasurer at Deutsche Bank, will join on Oct. 1. He had previously worked at Credit Suisse from 1995 to 2003. He replaces David Mathers who is stepping down.

McDonagh, initially announced as CEO of the Europe, Middle East and Africa (EMEA) region, will instead become COO to support Koerner in steering the group and in its strategic development, including changes to operations and costs, the bank said.

Deutsche Bank (DBKGn.DE) said in an internal memo seen by Reuters that Joshi would keep working in his current position in the coming weeks while the bank started the internal procedure to replace him.

The German bank said Joshi had helped secure a strong balance sheet essential for its transformation.

“At the same time, we improved the efficient use of our resources and our financing costs,” it said.

Credit Suisse also appointed Michael J. Rongetti as interim head of the asset management division, replacing Koerner, and said that all three new appointees would report to the bank’s new group CEO. 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 pretax loss of 1.12 billion Swiss francs ($1.17 billion) in the second quarter and was 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 head of the wealth management division, is also appointed 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 head of transformation, leading the operating model and cost transformation work.

Shares were 1.6% lower at 1424 GMT, in line with the European banking sector index (.SX7P).

($1 = 0.9590 Swiss francs)

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