Credit Suisse announces big losses, more job cuts
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Shares of Credit Suisse rose 2.3 percent on Tuesday as it struck an optimistic tone for the year ahead despite a loss for last year of 2.44 billion Swiss francs (2.3 billion euros).
That was mostly from a $2 billion (1.9 billion euro) settlement with US authorities over the sale of sub-prime mortgage-backed securities.
Investors were positive about its plans to cut up to 6,500 more jobs this year, on top of 7,250 last year, as part of a major restructuring.
The Credit Suisse Group fourth quarter and full-year 2016 results are now available: https://t.co/8yY5vB64tu#CSresultspic.twitter.com/b1ZaKMGPqh
— Credit Suisse (@CreditSuisse) February 14, 2017
Credit Suisse has also scrapped plans to sell a minority stake in its profitable Swiss banking division to raise cash and bolster the group’s capital reserves as that is no longer needed.
Chief Executive Tidjane Thiam said: “We are now well-placed to capture growth and benefit from improving market conditions as a result of the tough actions we took in 2016.”
Since taking over just over 18 months ago, Thiam has been on a cost-cutting drive while shifting the business towards wealth management and putting less emphasis on investment banking.
