Credit Suisse eyes more cost cuts, SonntagsZeitung reports
ZURICH (Reuters) – Credit score Suisse is contemplating the way it might reduce prices additional after a dismal efficiency by the embattled financial institution up to now quarter, SonntagsZeitung reported, citing senior sources.
“The numbers are catastrophic,” an unnamed senior banker instructed the newspaper, including that employees morale may be very low.
Managers and the board of administrators are actually discussing a brand new, massive cost-saving plan, a second government instructed the paper in an article revealed on Sunday.
“The associated fee construction is simply too massive for the financial institution’s income potential.”
Credit score Suisse has beforehand described 2022 as a “transition” 12 months wherein it’s attempting to show the web page on pricey scandals that introduced a near-total reshuffle of high administration.
Discussions on the cuts are at a sophisticated stage, the paper stated, although it’s unsure whether or not they are going to be introduced when Credit score Suisse studies second-quarter earnings on Wednesday.
A spokesperson for Credit score Suisse declined to remark to Reuters on the newspaper report.
The financial institution warned in June that it might submit a loss for the quarter, its third in a row.
The lender stated then that it was aiming to speed up cost-saving measures launched as a part of its reorganisation final November.
Analysts count on a reported web lack of 398 million Swiss francs ($414.02 million) for the quarter, Refinitiv information exhibits.
Switzerland’s second-biggest financial institution has been hit by a string of pricey scandals and the exit of Chairman Antonio Horta-Osorio after he flouted COVID-19 quarantine guidelines.
Amongst its woes was a $5.5 billion loss on the default of U.S. household workplace Archegos Capital Administration and the shuttering of $10 billion of its provide chain finance funds.
($1 = 0.9613 Swiss francs)
(Reporting by John Revill; Modifying by David Goodman)
