Credit Suisse, which has been rocked by a series of costly scandals, presented reorganisation plans Thursday that will dramatically pare back its investment bank activities and refocus on wealth management.

With the shift, Switzerland's second largest bank said it would place limiting and managing risks at the heart of its company culture, following the implosion of risky investments that have cost investors billions.

Chairman Antonio Horta-Osorio, who took the reins of the crisis-wracked bank in April, said he and the board had been working "relentlessly on shaping the strategy that will serve as our compass going forward".

The three-year plan aims to simplify Credit Suisse's structure, with just four main divisions and the main emphasis on helping rich and super-rich clients manage their wealth.

The makeover comes after the bank last month was slapped with nearly half-a-billion dollars in fines over its role in Mozambique's giant financial crisis.

Investors are also reeling from the billions that evaporated in the meltdowns at financial firms Greensill and Archegos.

The new plan will see Credit Suisse boost its wealth management division with a $3-billion injection and with some 500 additional counsellors for its wealthy clients.

From next January 1, it will merge the division's current three units into one.

At the same time, it said it planned to close the hedge fund services portion of its investment bank business, which was rocked by the implosion in March of the US hedge fund Archegos that cost the bank some $5.5 billion.

The aim will be to refocus on less capital-intensive activities, including advisory services for mergers and acquisitions.

Switzerland's second largest bank said it would place limiting and managing risks at the heart of company culture
Switzerland's second largest bank said it would place limiting and managing risks at the heart of company culture AFP / SEBASTIEN BOZON

Beside those two divisions, Credit Suisse will going forward count a section focused on its Swiss activities and another on asset management, it said.

The bank said it would pump $1-1.5 billion in additional investments annually over the next three years to boost its growth.

"With this strategic review, we have determined a clear and compelling way forward, building on existing strengths and accelerating growth in key strategic business areas," Credit Suisse chief executive Thomas Gottstein said in the statement.

But the investor and analyst reactions were more tempered.

Following the news, the bank saw its share price rise 0.75 percent in late-morning trading on the Swiss stock exchange to 9.97 Swiss francs a pop, as the main SMI index rose 0.73 percent.

Vontobel analyst Andreas Venditti stressed in a note that the strategy update was "rather an evolution than a "Big Bang", and in line with expectations.

At the same time, Credit Suisse published better-than-expected third quarter results.

It saw its net profit for the three-month period shrink 21 percent to 434 million Swiss francs ($475 million, 411 million euros), after it took a 564-million-franc hit from litigation charges.

Nearly half of that, 214 million francs, was linked to fines slapped on the bank last month by US and British authorities for "fraudulently misleading investors" and violating anti-corruption law in bond offerings made to Mozambique.

Its net revenues for the quarter ticked in at 5.4 billion, marking a five-percent hike year-on-year and surpassing analyst predictions.

The increase was mainly driven by the investment bank, which saw its net revenues for the quarter swell 10 percent compared to the same period in 2020.