By Ben Dummett
Credit Suisse Group AG said it had appointed new leadership to head its investment banking and capital markets division, as the Swiss bank struggles to boost revenue from its businesses advising on mergers and acquisitions and helping clients go public.
David Miller, a 22-year veteran of the Zurich-based bank, succeeds James Amine, another long-serving banker with the firm who had led the investment banking and capital markets business over the last four years. Mr. Miller will also join Credit Suisse's group executive board. Both bankers are based in New York.
In a statement Monday, Credit Suisse said Mr. Amine was stepping down as the unit's chief executive to assume a newly created role as head of private credit opportunities as part of a plan to broaden the product offering of the bank's asset management business.
Still, the management changes highlight the relative underperformance of Credit Suisse's investment banking and capital markets unit. The bank has been bruised recently by a spying scandal involving the firm's former head of wealth management.
Mr. Miller takes over the helm of the investment banking operations following his recent stint at Credit Suisse as the global head of credit, head of global credit products and as a member of the global markets management committee. That division oversees the trading and sales of equity and debt. In the third quarter, its pretax income totaled $272 million, as year-over-year revenue in the period rose 34% to $1.43 billion, largely on the strength of equity and fixed income sales and trading activity.
By comparison, the investment banking and capital markets business, which is charged with originating new business from mergers and acquisitions and initial public offerings, swung to a pretax loss of $16 million in the latest quarter from pretax income of $72 million in the year-ago period. Meanwhile, revenue fell 21% to $428 million amid a slowdown in mergers and acquisitions, IPOs and leveraged finance activity.
So far this year, Credit Suisse's global banking operations ranked seventh measured by revenue, down one spot from the same period last year, according to Dealogic, a data provider.
In another move, Credit Suisse also appointed Eric Varvel as chairman of investment banking and capital markets. He will also continue in his existing roles as CEO of asset management and president and CEO Credit Suisse Holdings (U.S.A.), Inc.
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