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Credit Suisse announces big losses, more job cuts

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By Euronews
Credit Suisse announces big losses, more job cuts

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.