Goldman Sachs noted on Tuesday that Credit Suisse has underperformed the rest of the sector by 59% since the start of 2021, due to company-specific events and industry-wide obstacles to revenue.
Despite the more favorable picture Goldman sees across the European banking space — in which higher interest rates will boost revenue and returns forecasts, reinvestment in new technology will enhance returns, and excess capital can be distributed to shareholders — Credit Suisse is valued roughly in line with the sector at present.
The ratings agency also cited "the crystallisation of large financial losses during H1 2022, resulting in stress on the bank's financial profile and potential delays in technology investments, and in the transformation of the business and an expectation of continued weak performance in 2022.
Credit Suisse Chairman Axel Lehmann told CNBC last week that the new strategic review will look to accelerate restructuring efforts.
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