Credit Suisse eyes more cost cuts, SonntagsZeitung reports

The emblem of Swiss financial institution Credit score Suisse is seen at a department workplace in Zurich, Switzerland, November 3, 2021. REUTERS/Arnd WIegmann/File Photograph

ZURICH, July 24 (Reuters) – Credit score Suisse (CSGN.S) is contemplating the way it might lower prices additional after a dismal efficiency by the embattled financial institution previously quarter, SonntagsZeitung reported, citing senior sources.

“The numbers are catastrophic,” an unnamed senior banker instructed the newspaper, including that employees morale could be very low.

Managers and the board of administrators at the moment are discussing a brand new, massive cost-saving plan, a second government instructed the paper in an article printed on Sunday.

“The price construction is simply too massive for the financial institution’s income potential.”

Credit score Suisse has beforehand described 2022 as a “transition” yr wherein it’s attempting to show the web page on expensive scandals that introduced a near-total reshuffle of high administration. learn extra

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 stories 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 will submit a loss for the quarter, its third in a row. learn extra

The lender stated then that it was aiming to speed up cost-saving measures launched as a part of its reorganisation final November.

Analysts anticipate a reported web lack of 398 million Swiss francs ($414.02 million) for the quarter, Refinitiv information reveals.

Switzerland’s second-biggest financial institution has been hit by a string of expensive scandals and the exit of Chairman Antonio Horta-Osorio after he flouted COVID-19 quarantine guidelines. learn extra

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
Enhancing by David Goodman

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