Credit Suisse reinforces its rate of savings in the commercial division, attempting to save another 800 million CHF. According to the restructuring plans of the bank, the investment division should shrink and cut more than 2000 jobs. The measure should help meeting the target to cut costs with at least 4.3 billion CHF until 2018, as so far Credit Suisse has managed to save 3.5 billion CHF. The business of investment division suffered from the reticence of customers to carry out investments difficult market situation and high costs, which led to disappointing results.
“We leave those activities that do not fit our strategy”, said the bank. “Risk-weighted assets in this division have until the end of the year to fall to 60 billion USD from the previously planned 85 billion USD”, adds the statement.
The second-largest Swiss bank posted net loss of 2.94 billion CHF in 2015, which is much worse than the median estimate of the finance analysts of a loss of 2.12 billion CHF. As noted, the bank set aside 3.8 billion CHF to write off in the fourth quarter as a result of the new strategic direction, which business management focused on wealth management. The write-off is mainly related to the acquisition of Donaldson, Lufkin & Jenrette in 2000.
In October Credit Suisse started the big restructuring program and attracted 6 billion CHF from investors, reinforce business wealth management, investment banking and limit cut jobs. A little more than four months after the announcement of the strategy many analysts still not sure how Credit Suisse will achieve its objectives for growth, including an increase in profit before tax in the Asia-Pacific region more than doubled.