Credit Suisse bullish on booming PH economy

Investment banking giant Credit Suisse is expected to renew its focus on high growth economies like the Philippines, especially after its Asia-Pacific CEO, Helman Sitohang, was named to the group’s global executive board.

Sitohang—an Indonesian, and the first Southeast Asia to be appointed to Credit Suisse’s top policy making body—expressed bullishness about the Philippines’ prospects and said he expected to do more investment banking business with Filipino firms.

“I’m a big fan of the country. I’ve been coming here for some time now and I have many friends among the entrepreneurs here,” he told the Inquirer. “It’s quite encouraging to see that they’re quite bullish on the country. Having the highest growth rate in Southeast Asia is quite an achievement. And you’re the second fastest growing economy in the region, or maybe third, after China and India.”

In a separate statement, Credit Suisse said its renewed focus on high growth emerging markets in the Asia Pacific, following a global strategic review by the group, was expected to double its profitability by 2018.

This announcement came as Credit Suisse reported record results for Asia Pacific, with revenues rising 17 percent to 3 billion Swiss francs, and pre-tax income of 1.1 billion Swiss francs, up 48 percent for the first nine months of the year.

The results were driven by continued strong performance of the bank in Asia Pacific and a new business model that provided integrated private banking, wealth management and investment banking products to its clients, including a growing number in the Philippines.

“Who would have thought we would be talking about the Philippines like this five to seven years ago?” Sitohang said. “When it comes to the potential of the country, there’s a lot of human resource capital, which is very well known globally, as well. That’s a big asset for the country.”

He added that the country needs to improve on its physical infrastructure to sustain a high growth path, but expressed satisfaction at the rate by which resources were being directed into the sector.

“Investments are going toward infrastructure, and that’s good,” the Credit Suisse official said. “Obviously, implementation will take time but that’s always the challenge in every country.”

In the Philippines, Credit Suisse has been a leading financial adviser to the government and major corporations since 1992, providing financing and advisory services spanning capital raising, liability management, M&A transactions and structured finance. It converted its representative office to a full branch in 2004 to better handle the increasing volume of high profile advisory engagements and international bond deals.

Credit Suisse was the exclusive financial adviser to Rizal Commercial Banking Corp. on the sale of its 20-percent stake to Taiwan’s Cathay Life Insurance for $402 million. The bank was also the sole financial adviser to Alsons Prime Investments Corp. on its A$361-million acquisition of Indophil Resources in January.

Also, Credit Suisse acted as exclusive financial adviser for the sale of San Miguel Corp.’s a 27-percent stake in Meralco to JG Summit Holding.