Credit Suisse plans new round of job cuts as profits collapse

Tim Wallace
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SWISS banking giant Credit Suisse saw profits plunge on debt charges and tougher regulations, as it revealed its third quarter results yesterday.

Profits came in at SFr254m (£168.6m) in the three month period, down 63 per cent on the same period of last year and prompting the bank to increase its costs savings target from the SFr3bn announced in July to SFr4bn.

In a bid to make the savings by 2015 it is already in the process of cutting 3,500 of its 48,400 workers and confirmed more would have to go to hit the target, but did not give an exact figure on the new job cut plans.

The bank took a hit of just over SFr1bn from adjustments of the value of its debts, while asset management fee revenues fell 14 per cent on the year to SFr438m.

But revenues did increase in the investment banking arm, soaring 66 per cent on the year to SFr3.3bn, driven by rising bond trading activity. In particular the bank saw greater demand for higher yielding products.

Shares edged up 0.09 per cent on the day.