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Credit Suisse shrinks investment bank, cuts jobs

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Credit Suisse shrinks investment bank, cuts jobs
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Credit Suisse plans to cut another 1,500 jobs and scale back its loss-making investment banking business as it announced disappointing third-quarter results.

Chief Executive Brady Dougan admitted the quarter had missed the bank’s expectations. He said the job cuts would hit all regions and divisions.

However Dougan claimed Credit Suisse was doing better than its rivals in restructuring terms.

“We’re ahead of the curve versus our peers who still face many of these challenges,” Dougan told a news conference.

Banks are shedding jobs as strict capital rules aimed at shielding them from future financial crises and a tough third quarter for trading income take their toll on investment banking divisions in particular.

The strong Swiss currency hit pretax income to the tune of 277 million francs in the quarter. Dougan said he was pleased the franc had been more stable in the quarter but said he expected more foreign exchange volatility to come.

The bank said it would allocate more resources to faster growing markets such as Brazil, southeast Asia, greater China and Russia, which it expects will account for a quarter of group revenue by 2014 from 15 percent now.