Credit Suisse, Switzerland's second-biggest bank, said Thursday it defied market expectations by posting a profit amid a vast cost cutting programme. Net earnings came in at 41 million Swiss francs (38 million euros, $42 million), a massive decline of 95 percent from the same quarter last year. But the bank still did better than analysts had expected, with consensus data from Factset pointing to a 74-million-franc loss.
Credit Suisse has been undergoing a massive cost-cutting programme since Tidjane Thiam, a former insurer, took over at the helm last year. "We remained focused on implementing our strategy with discipline," Thiam said in a statement. "We have remained focused on reducing our cost base."
Operational costs had been reduced by two percent year-on-year, he said. Some 5,400 jobs have been cut. Non-staff cost reduction amounted to 12 percent. "We still have a long way to go in our journey but we are fully mobilised to deliver in challenging market conditions on our key commitments to reduce cost, strengthen our capital base and drive profitable business growth." Credit Suisse is refocusing its business away from investment banking, towards wealth management. In morning Zurich stock market business, Credit Suisse shares dropped 5.4 percent to 12.55 francs as investors were spooked by the bank's forecast of difficult conditions in its markets.
Comments
Comments are closed for this article.