Credit Suisse plunged to a loss in the second quarter after a SFr1.6bn (£1bn) fine for helping US clients evade taxes wiped out its profits, the Swiss bank said yesterday.
It launched a new efficiency drive to help cut costs, beginning by closing its commodities trading business.
The unit accounted for $2bn (£1.2bn) of risk-weighted assets (RWAs) but was too small to bring it sufficient returns, the bank said.
Its closure is part of a wider programme to cut $8bn of RWAs and save $200m of annual expenses.
The giant bank lost SFr700m in the three-month period, swinging into the red after it made SFr1bn in the same period of 2013.
Its revenues fell six per cent to SFr6.4bn, while operating expenses shot up 30 per cent to SFr6.8bn.
By unit, private banking and wealth management lost SFr749m, compared with a profit of SFr917m a year earlier – revenues fell 11 per cent to SFr3bn while expenses jumped 54 per cent to SFr3.8bn.
Investment banking performed better – revenues and expenses both fell two per cent, leaving profits flat at SFr752m.
The bank’s bond trading unit performed well despite the downward trend in the sector – revenues rose four per cent on the year to SFr1.5bn.
Credit Suisse’s shares slid 0.96 per cent on the day.