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Credit Suisse must save even faster

2022-12-01T16:01:36.760Z

Credit Suisse is apparently exploring ways to speed up its austerity program. This is reported by the Reuters news agency, citing insiders.



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Credit Suisse logo in Zurich

Photo: ENNIO LEANZA / EPA

Outflows of customer funds and the industry-wide slowdown in business dampened earnings prospects for the business, it said.

Accordingly, managers of the major Swiss bank were urged to identify further cost-cutting potential.

The measures could lead to more jobs being cut more quickly than previously planned.

Credit Suisse announced a far-reaching restructuring at the end of October in order to overcome one of the worst crises in its history.

The 166-year-old bank wants to withdraw from parts of investment banking, reduce costs by CHF 2.5 billion or 15 percent and cut around 9,000 of the 52,000 jobs by 2025.

According to the information at the time, the bank had planned to cut 2,700 jobs in the current quarter.

Credit Suisse said in a statement that the cost-cutting measures included organizational simplifications as well as personnel and third-party costs.

»As mentioned, the bank is making progress with these cost reduction measures and is following a clear implementation plan.«

The bank is cutting about 5 percent of its retail banking workforce in the Asian financial hub of Hong Kong, two insiders said.

Above all, bankers at the middle and lower levels are affected.

The cuts primarily affect employees in business with rich customers in China.

Next to Singapore, Hong Kong is Credit Suisse's second center in Asia.

Credit Suisse declined to comment on the Hong Kong dismantling.

With the restructuring, the bank wants to focus even more on business with millionaires and billionaires.

But the recent turbulence is making this move difficult.

In view of the doubts about the financial condition of the group, customers withdrew CHF 84 billion or six percent of the total portfolio from Credit Suisse between the beginning of October and mid-November.

Customers from Asia in particular carried their money to other institutions.

In the meantime, there has been a counter-movement, for example in the Swiss business, said Axel Lehmann, Chairman of the Board of Directors.

ssu/Reuters

Source: spiegel

All business articles on 2022-12-01

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