Credit Suisse announces big losses, more job cuts

Credit Suisse announces big losses, more job cuts
By Euronews
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Credit Suisse says its 2016 losses were 2.44 billion Swiss francs, it plans to cut up to 6,500 more jobs this year.

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.

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.

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