Credit Suisse Group AG has announced that Prudential Plc's Tidjane Thiam will replace Brady Dougan as new CEO. The move was taken as the bank struggled with regulations that hurt profit and weakened capital.

In a statement on its website, Credit Suisse, on Tuesday, said that Dougan will step down at the end of June. In another statement, Prudential mentioned that a successor to Thiam has been found and will be named after the completion of the regulatory approval process.

The switch has put an Ivory Coast-born French national on the top of Switzerland's second-biggest lender. It has spent the last ten years running insurance businesses.

Dougan, an American who has led Credit Suisse since 2007, dealt with the pressure in such a way that he shifted the strategy away from investment banking keeping in mind one of the worst performances among European banks this year.

Since 2009, Thiam has run Britain's largest insurer by market value, and has almost tripled its stock price while successfully betting on Asia to drive up profit.

Although calls for Dougan resignation died down after Credit Suisse's settlement with US authorities in 2014 on allegations that it aided tax evaders, questions are still hovering over the lender's objectives and capital.

Andreas Venditti, a banking analyst at Vontobel in Zurich, said that Thiam, even without the banking background, will bring some fresh air to Credit Suisse. "Maybe cutting the investment bank will become easier," he said.

Sky News said that Prudential's Mike Wells, the head of its US Jackson National Life unit, will succeed Thiam this year.

Chairman Urs Rohner said that Thiam's extensive international experience, including wealth and asset management and the successful development of new markets, has provided a firm foundation for leading Credit Suisse.

He added that Thiam as CEO has led Prudential to great success in difficult times.