CREDIT Suisse bosses have taken the lead in slashing costs, yesterday accepting a 25 per cent pay cut to shore up profits. Shares soared nine per cent on renewed commitments to cut costs.
Board directors at the giant bank made the personal sacrifice to show bosses are serious about accountability in the wake of the multi-billion dollar penalties in the US imposed because the bank helped American customers dodge taxes.
The bonus pool was also cut by nine per cent, and investors welcomed healthy profits for the fourth quarter.
Core net income attributable to shareholders came in at SFr921m (£645m) for the three-month period, swinging back from a loss of SFr476m in the same quarter of 2013.
Revenues rose eight per cent to SFr6.4bn, with strong advisory and trading incomes from the investment banking arm.
And operating expenses were slashed 20 per cent to SFr5.1bn on falling administration costs and compensation to staff.
Chief executive Brady Dougan said he will take further measures to reduce the negative impact of the strong franc.
“We are implementing a number of measures to offset the impact from the strong appreciation of the Swiss franc and the more pronounced low interest rate environment on our profitability, following the Swiss National Bank’s announcement in January,” Dougan said. “Based on 2014 earnings, we estimate the net adverse impact on our profit to be approximately three per cent and expect to more than offset this impact through the announced measures by end-2017.”