Credit Suisse adds Deutsche Bank's senior exec Stuart McGuire after equities slump

Switzerland's national flags fly beside the logo of Swiss bank Credit Suisse in Zurich.
Switzerland's national flags fly beside the logo of Swiss bank Credit Suisse in Zurich.PHOTO: REUTERS

LONDON (BLOOMBERG) - Credit Suisse Group, the Swiss lender struggling to improve performance at its stock-trading unit, replaced one of the business's top European bankers with a senior executive from Deutsche Bank.

Mr Stuart McGuire, who runs Deutsche Bank's client-execution strategy for equities in Europe, the Middle East and Africa, will replace Mr Daniel Kaye as Credit Suisse's head of cash-equities trading and sales trading for the same region, according to staff memos obtained on Wednesday by Bloomberg. Mr Adam Bradbery, a spokesman for the Zurich-based lender, confirmed the memos' contents.

Credit Suisse chief executive officer Tidjane Thiam has pledged to bolster the bank's stock-trading business while pulling back from bond trading as part of an overhaul designed to cut risk, boost profit and meet tougher capital rules. Still, revenue from the business tumbled 22 per cent in the first quarter to 722 million Swiss francs (S$1.008 billion), among the worst performances posted by a global lender, following a similar decline for all of 2016, company reports show.

Mr Kaye, who is leaving Credit Suisse after 19 years, is the latest senior manager in the bank's stock-trading business to depart. Mr Thiam hired UBS Group's Mike Stewart in 2016 to replace equities head Mike Paliotta, while Mr Stephen Dainton, head of the business for Europe, left earlier this year, Bloomberg reported in January.

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Revenue from cash equities at Credit Suisse's global markets unit, which covers the Americas and EMEA regions excluding Switzerland, was higher in the first quarter compared with a year earlier, the bank said last month. The business dipped in the fourth quarter "due to a decline in EMEA trading volumes", Credit Suisse said in a report.

Mr McGuire leaves a business also struggling to improve stock-trading performance. Revenue from Deutsche Bank's equities business tumbled 25 per cent last year to US$2.8 billion (S$3.94 billion), the second-worst result on a dollar basis among global lenders after Credit Suisse, and fell another 13 per cent in the first quarter of this year.

"Stuart's track record of running highly successful equities trading and sales businesses, developing client franchises and generating new sales opportunities means he is ideally placed to lead this business function at Credit Suisse," He Nas Al-Khudairi, head of EMEA cash equities, and Mr Paliotta wrote in the memo.

In September, Deutsche Bank promoted Ashley Wilson to a new role overseeing stock trading for EMEA as it seeks to rebuild its equities business while shrinking in other areas. CEO John Cryan is carrying out a plan to improve the Frankfurt-based firm's financial strength and shore up profitability, which included slashing 2016 bonuses for many senior bankers.

The departure of Mr McGuire follows other exits from Deutsche Bank's investment-banking unit. Piyush Gupta, who covered Asian technology companies from Singapore, is leaving the firm after 12 years, two people with knowledge of the matter said on Tuesday.