Credit Suisse sharpens axe as it remains in the red
Swiss banking giant Credit Suisse is still in the red, heaping pressure on chief executive Tidjane Thiam to execute his turnaround plan.
The bank today posted a loss of $2.4 billion (£1.9 billion) for 2016, worse than bank-watchers had expected. That’s the second year in a row of hefty losses, making job cuts inevitable.
Credit Suisse says it will cut 5500 positions this year on top of last year’s 7250.
Thiam, the former boss of Prudential in the UK, said: “We are well positioned to make progress with our restructuring program.”
In the fourth quarter, the bank paid out $2 billion to settle US claims it mis-sold mortgage bonds.
A small upside was the global markets arm, which went from a massive loss last time to a small profit of Swfr5 million (£4 million) this year.
