ZURICH (Reuters) – Credit Suisse Group announced Wednesday cuts additional costs worth 800 million Swiss francs ($ 821 million) francs and plans to further reduce its investment banking at a time when driving a restructuring plan aimed at revitalizing their profits.
like their global peers, Credit Suisse is dealing with interest rates at historic lows, low prices of raw materials and slower growth in emerging markets China.
the cuts include the elimination of 2,000 jobs in its business Global Markets to better weather the difficult market conditions, said the second largest bank in Switzerland.
” this was the restructuring plan that investors were waiting for last year, “said George Karamanos, an analyst at Keefe, Bruyette & amp; Woods. “A negative operating environment has forced management to address the difficult issues that prevented the last time.”
The company’s shares rose 1.61 percent to 14.56 Swiss francs 1129 GMT, after falling more than a third this year. The chief financial officer of Deutsche Bank said Tuesday that the first two months of 2016 were the worst start of the year for banks seen in his banking career.
Tidjane Thiam, who became chief executive Credit Suisse in July last year after arriving from UK insurer Prudential, takes five months to implement its new development strategy.
Thiam increased about 6,000 billion francs in capital last year and is cutting the volatile investment banking business while focusing on the more stable asset management division.
($ 1 = 0.9721 Swiss francs)
(Reporting by Michael Shields. Editing Spanish by Carlos Aliaga / Rodrigo Charme)
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