CREDIT SUISSE: We overestimated CS, but...!

... but let's start with a somewhat heretical question: "For example, do only idiots work at the cantonal banks?" No, of course not, on the contrary! As confirmed by the long-standing continuities as well as again by the 2021 results - all 24 cantonal banks have reported excellent profits - the staff of the cantonal banks is impeccably trained, efficient, ambitious and down-to-earth! What we are getting at: We do not understand why CREDIT SUISSE always flirts with wanting to hire only the best banking professionals. While this is commendable and goal-oriented, it is neither coherent nor comprehensible when combined with the significantly higher salaries (including bonuses) and the track record of recent years. It is clear that a major bank is more broadly oriented and much more international, which, as has been shown, also increases the risks. From this point of view, we believe that CREDIT SUISSE is well positioned for the future, following the procedural and personnel adjustments. On the other hand, we consider the latest personnel changes at management level to be more of an "alibi exercise", perhaps to distract attention from other issues, such as the wage policy or the latent cost problem. Even if provisions and costs for legal disputes are eliminated in the current dimensions one day - we hope from 2023 at the latest - there will still have to be a significant increase in costs. Perhaps we should take Deutsche Bank as an example, which for many years was sailing in similarly negative waters. It was only the return to a more down-to-earth approach, the significant reduction in personnel (including "water-head areas"), the massive reduction in the bonus pot and other stringent measures that got Deutsche Bank back on track. In our opinion, CS still needs to take action here.

... but we are absolutely convinced that with Axel Lehmann and other turns, success will come! We see the perfect "turnaround story"! Price target remains: CHF 12!

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