According to a report published by Bloomberg, Credit Suisse Group AG (NYSE: CS) is stopping wealth management operations at nine markets in the sub-Saharan region. These markets include Botswana, Ghana, Ivory Coast, Kenya, Mauritius, Nigeria, Seychelles, Tanzania, and Zambia.
The Swiss financial services firm is referring its private banking clients in these markets to Barclays PLC (NYSE: BCS). However, Credit Suisse plans to retain its South African operations.
It said, “Credit Suisse has signed a private banking client referral agreement with Barclays as part of the plan to exit nine non-core wealth management markets primarily in Sub-Saharan Africa, excluding South Africa.”
The agreement forms a part of the company’s strategic plan, which it announced in November last year, to exit non-core wealth management markets in the sub-Saharan region.
As per the agreement, assets worth around $2.5 billion could move to the U.K.-based bank, Barclays.
About Credit Suisse
Headquartered in Zurich, Credit Suisse offers various investment products, private banking, wealth management, financial advisory services, securities underwriting, sales and trading, and insurance and pension solutions.
The company’s shares closed 1.4% lower on Thursday. The stock lost another 6.7% in after-hours trading to end the day at $8.95.
Overall, the stock has a Moderate Sell consensus rating based on 1 Hold and 1 Sell. As none of the analysts covering the stock has provided the price target, there is no Credit Suisse stock forecast.
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