Martin Ebner Seeks Board Seat at Credit Suisse

Martin Ebner, the Swiss financier who previously forced Union Bank of Switzerland into a merger with Swiss Banking Corporation, has requested a seat on Credit Suisse's board. This move comes as Ebner has accumulated a 9.7% stake in the bank and seeks to push Credit Suisse towards a more aggressive role in European banking consolidation. Following Deutsche Bank's acquisition of Dresdner Bank, Credit Suisse now ranks behind Deutsche in size. The bank has reported a significant 70% increase in profits for 1999, reaching 5.2 billion Swiss francs.

Key Takeaways:

• Martin Ebner, a Swiss financier, has asked to join Credit Suisse's board, potentially bringing significant influence to the table given his 9.7% stake in the bank.
• Ebner's move is linked to the recent takeover of Dresdner Bank by Deutsche Bank, enabling Deutsche to surpass Credit Suisse in size, prompting Ebner to push for the Swiss bank to be more aggressive in banking consolidation in Europe.
• Credit Suisse has reported a substantial 70% increase in profits for 1999, totaling 5.2 billion Swiss francs, a notable turnaround from the $221m loss in 1998, when the bank was hit hard by the Russian bond market collapse.
• The bank's investment banking arm, Credit Suisse First Boston, swung from a $221m loss in 1998 to a profit of 1.88 billion Swiss francs in 1999.
• The potential conflict of interest linked to Ebner's own bank, BZ Bank, being a domestic competitor to Credit Suisse is being considered by the CS board.
• Lukas Muehlemann, Credit Suisse chief executive, highlighted Ebner's qualities but pointed to areas of potential conflict of interest.
• The CS board generally views Ebner's influence positively but is cautious in addressing the conflict issues.
• Credit Suisse has been linked to Fortis, the Dutch-Belgian bancassurance group, which is seeking a partner to expand beyond its Benelux base.
• Muehlemann hailed last year's profits growth which enabled the group to put behind the Russian bond market hit.

Statistics:

• Ebner's stake in Credit Suisse: 9.7%
• Credit Suisse's 1999 profit increase: 70%
• Total credit Suisse profits for 1999: 5.2 billion Swiss francs
• Credit Suisse First Boston profit in 1999: 1.88 billion Swiss francs
• Credit Suisse's loss in 1998: 221m Swiss francs
• Number of Swiss francs increase in Credit Suisse shares: 1

Sources:

• The Financial Times