ZURICH (Reuters) - Credit Suisse (CSGN.S) on Monday appointed David Miller, the bank’s global head of credit, to take charge of its floundering investment banking and capital markets business.
Miller, who joined Credit Suisse in 2000, has been charged with improving the performance of the business, which saw a 6% drop in third quarter revenue reflecting a sharp fall in advisory fees for mergers and acquisitions.
Switzerland’s second-biggest bank has seen its market share in big mergers and acquisitions fall this year, Refinitiv data shows.
Rival UBS (UBSG.S) is axing high-paying investment banking staff after a disappointing performance triggered a restructuring at the division.
Miller will replace James Amine, who is stepping down to take on a newly created job as the New York-based head of Private Credit Opportunities, Credit Suisse bank said.
Miller will take Amine’s seat on Credit Suisse’s group executive board.
“Credit Suisse has had three years of good performance at the investment bank. At the beginning of the year our expectations were higher than what we have achieved,” a person familiar with the situation told Reuters.
“Some deals fell apart, others we missed out on. It is the right time to have a fresh pair of eyes take a look.”
Miller’s most recently served as the bank’s Global Head of Credit, head of Global Credit Products and a member of the Global Markets management committee.
But M&A will be his new focus, with the intention to beef up Credit Suisse’s revenue by adding bankers in growth areas such as technology and healthcare.
“Credit Suisse will greatly benefit from his deep experience across capital markets and investment banking, combined with his broad client relationships both in the U.S. and internationally,” Chairman Urs Rohner said.
Analyst Javier Lodeiro at Zuercher Kantonalbank said: “We are positive that a new CEO is coming. He will lead the turnaround of this unit.”
Credit Suisse also announced that Eric Varvel would become chairman of investment banking and capital markets, replacing Harold Bogle who has been made vice chairman of the group executive office.
Varvel, who joined in 1990, is a New York-based managing director in Credit Suisse’s International Wealth Management division.
The changes are effective immediately, Credit Suisse said.
Reporting by John Revill and Oliver Hirt; editing by Jason Neely