CS held an analyst presentation yesterday. No major information was released-the bank published details of its six-month IAS figures (the main items of which were released in August), and the new CEO, Jack Stack, outlined CS’s transformation strategy. Worth mentioning with the latter is the total estimated CZK 5.1 bil. cost of restructuring CS in 2000 and 2001, with CZK 1.7 bil. already accounted for in the six-month figures and CZK 3.4 bil. to be accounted for next year. The bank did not provide any profit projections for 2000 and 2001.
The bulk of the restructuring (basically on all fronts of the bank’s activities) should be completed by the end of 2001, with 2002 projected to be the first year to show the full benefits of the restructuring measures. In 2002, CS’s target is to achieve an ROE of 18% or more and a cost-income ratio of 70% or less. The bank will lay off 1,300 employees this year, and will continue reducing its workforce in the following years. On the revenue side, orientation toward mass retail banking is dominant, though the bank wants to develop other areas too. CS wants to make its extensive branch network (800 branches) more efficient, but is also preparing other sales channels (phone banking and online banking, the latter is to be in nationwide operation by mid-2001).