Banking News

Local Advisory Teams Bolstered - Credit Suisse & Citigroup

(18 July 2018 - Australia) Credit Suisse has bolstered its local Australian team with the appointments of Michael Tan and James Disney to drive deal advisory prospects.

As global head of software for the capital markets group, Mr Disney is returning from New York to jointly head up the investment bank with resources banker Mark Carlile. Mr Tan, head of Asia Pacific financial institutions group, will divide his responsibilities between Australia and Hong Kong as part of the changes. That is aimed at helping the group capitalise on rising activity in the sector including in particular bank divestments of wealth and life insurance arms. The group’s renewed focus on the financial institutions coverage comes as the banking royal commission and other regulatory scrutiny is shaking assets out of vertically integrated banks. Mr Disney, an Australian who joined Credit Suisse 20 years ago and has worked across multiple markets, has had a hand in raising more than $28 billion for global giants including IBM and Oracle. Recent transactions he has worked on include KKR & Co's purchase of BMC Software, which global media reports valued at $US8.3 billion, and closer to home the sale of ASX-listed software group Aconex to Oracle. Credit Suisse's performance has been underpinned by advising on Rio Tinto's coal divestment program including the US$2.25 billion Kestrel mine sale.  Credit Suisse is seeking to outperform 2017 revenues with investment banking recording a loss of $3.4 million, compared to a $44.5 million net profit a year earlier, while Credit Suisse Holdings which covers trading, institutional stocks, prime financing, capital raisings and corporate advisory services, saw operating profit slide to $18.1 million.

Michael Tan stated that overseas-based investors were hungry for information around Australia's regulatory environment post the royal commission. "People are doing their homework and are certainly taking note," he added. "What they want to know is what are the political dynamics behind the commission, what will likely be the conclusions and how will that impact financial services?" Credit Suisse Australia CEO John Knox said "We want to continue to invest in Australia across all of our businesses and on investment banking side these two moves are significant,". The accounts lodged locally did not "accurately reflect" the whole Australian business but he expects the new appointments will see the firm improve revenues. Credit Suisse is also in the process of restocking its research ranks following several departures earlier this year. "We are adding to what is already a senior team. We think Australia is in the early stages of an M&A cycle and we believe that activity levels will continue to increase over the next few years across sectors."

Citigroup has poached Alok Jhingan from Deutsche Bank's as director and co-head of Australia and New Zealand acquisition and syndicated finance. Jhingan spent almost 12 years at Deutsche running the leveraged finance division and commence with Citi in August. Jhingan will report to himself and fellow managing director Benjamin Ng. "The appointments of Alok and vice president Simon Marrison are part of Citi's increasing commitment to advisory and financing for financial sponsors.". Citigroup’s deals included PEP's purchase of Lifehealthcare, TPG's $200 million sell down of its Inghams' shareholding and teeing up Carlyle's debt finance in Europe for its Accolade Wines buy-out.