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Credit Suisse CEO Tidjane Thiam says a healthy degree of paranoia is required as the head of Switzerland's second-largest bank and he «worries about everybody».

Tidjane Thiam can take credit for turning around the Swiss bank: Credit Suisse is slimmer, more efficient, and more solidly capitalized than it was when the CEO arrived in 2015, but it hasn't managed to post a profit yet.

«I am here to stay,» Thiam told Swiss business newspaper «Finanz und Wirtschaft,» (behind paywall, in German), countering speculation that he is casting around for his next gig elsewhere. The rare interview comes one week before the Zurich-based bank unveils his pay most recent paycheck, after Thiam and top management were forced to back down in a pay snafu last spring. 

Asian Focus

Credit Suisse has been pursuing opportunities such as in Asia, where the bank acquired close to 17 billion Swiss francs of net new client assets in 2017, according to the chief executive.

After stepping into the hot seat at Credit Suisse, Thiam pinpointed five issues he had to quickly address: insufficient capital, poor AuM growth rates, cost reduction problems, high risk exposure and ongoing litigation. He also wanted to get rid of assets and businesses acquired in the past that did not fit his vision.

Break with Dougan

By disposing of the private banking business in the U.S. and moving thousands of jobs out of the U.K., Thiam also began to steer the bank away from the legacy of his predecessor Brady Dougan. 

In justifying the cost cutting actions Thiam says with the IT, real estate and other associated infrastructure costs eliminated the costs will not reoccur. «We needed to cut costs to become more efficient as we started from a position where we were not competitive, therefore a strategic cost program was needed,» he said.

Activist Threat

In October 2018, Credit Suisse has the option of repaying 6 billion francs mandatory convertible bonds held by investors in Qatar and Saudi Arabia which Thiam intends to call, as finews.asia reported in October. The move will save Credit Suisse 250 million francs annually.

Fintech Worry 

«Generally I am worried about everybody, that is my job. I find a healthy degree of paranoia is required in my position,» Thiam said when pushed for his opinion on the encroachment of the big tech firms into the banking space. His bank however is investing enormous sums in digital initiatives.