CREDIT SUISSE: First price targets already at CHF 4!

Not that we are wallowing in absolute optimism about the CREDIT SUISSE share, but a certain degree of confidence should now be allowed again. At the very least, the bank is trying very hard to work through the problem areas intensively. At the same time, however, the crew is, at least in part, dependent on a friendly market environment in 2023. What pleased us very much in the sense of shareholders and customers is that the concrete "willingness to make sacrifices", which we have always criticized, is also becoming noticeable, primarily in the context of the (rightly) massively reduced bonus pot. Allegedly, CREDIT SUISSE's management is planning to reduce the variable pool to around CHF 1 billion, which would "only" be about half of what it was last year. Two years ago, the total was still at a high CHF 2.9 billion. And who knows, maybe the "head of compensation" Stuart Woodward will cancel the bonuses altogether, for a limited period of one year, just like in 2020 at the British Lloyds Bank. For the time being, we would be satisfied with a halving, especially since many of the employees are currently making a great effort to build trust.

CREDIT SUISSE is also working reliably on the four "Greensill funds" in liquidation; after the final payment, the fund investors will have received back almost 100% of the net asset value (99.4% to 99.9%)! Only with the insolvent financing fund "Greensill Capital" one lies "only" with approximately 70% repayment. A positive surprise could be the repayment of Archegos - not in total, but in terms of redistribution by the bankruptcy trustee. Should 20% of USD 5 billion actually flow back to CREDIT SUISSE, this would be helpful for the overall profit development. We will see how the spin-off of the investment bank develops; here it is difficult to make a forecast. Let's hope that the crisis of the Indian Adani Group does not lead to new CS risks; CS has not commented on press inquiries so far. Long-term price target: CHF 12!