Credit Suisse seen cutting more costs, reporting quarterly profit
By Katharina Bart | February 7, 2013 10:14 AM EST
The Zurich-based bank's profitability - like its sector peers - depends more on cost-cutting and restructuring than a pick-up in business, analysts say, as tougher regulations following the 2008-2009 banking crisis continue to bite.
So far, Credit Suisse has not said how many jobs it plans to cut in order to reach its target of cutting spending by 4 billion Swiss francs ($4.40 billion), beyond the 3,500 jobs it said in November 2011 would go.
The bank employed 48,400 staff at the end of September, 20,600 of them in its investment banking business and most of the rest in its private banking operations.
In June, Credit Suisse was urged by the Swiss National Bank to cut shareholder payouts or raise funds to bolster its capital base.
Credit Suisse responded a month later with a $15.6 billion capital plan to issue convertible bonds, pay bonuses in shares, and sell prime Zurich real estate.
Analysts in a Reuters poll forecast 0.99 francs per share 2012 dividend and see a quarterly net profit of 645 million francs, after the bank nearly halved its dividend in 2011 to 0.75 Swiss francs.
Thursday's earnings will be the first since Credit Suisse's private banking arm absorbed its smaller asset management unit along with some investment bank activities in November.
That move, which triggered a management shake-up, reinforced Credit Suisse's commitment to its bond-trading business, all but abandoned by hometown rival UBS
($1 = 0.9095 Swiss francs)
(Reporting by Katharina Bart; Editing by Louise Ireland)
Join the Conversation
- Tourre on stand says email in SEC case 'not accurate'
- Syrian authorities blocking access to needy in Homs - Red Cross
- Faith in European Union at low ebb, EU poll says
- Former UBS banker gets 18 months, $1 million fine, for muni bid-rigging scheme
- U.S. judge halts challenges to Detroit's bankruptcy bid
- 5 Proofs Russia is Geared-Up for Shooting War with U.S. and Can Win Future Nuclear Showdown
- Target’s ‘Surprise Doorbusters’ Black Friday 2014 Deals On TV Sets, Entertainment Centres, DVD Players And More
- IKEA Black Friday 2014 Ad Includes Discounts On Home Furnishings, Appliances, Kitchen Designs, Beds, Sofas, Mattresses And Toys
- T-Mobile’s Black Friday 2014 Deals On Apple iPhone 6, Samsung Galaxy Note 4/Edge, Nexus 6, HTC One M8, LG G3, iPad Air 2 And Mini 3
- Black Friday And Cyber Monday Sale 2014: AT&T's Cricket Wireless Offers Discounts On Lumia 1320, Galaxy S5, S4 And HTC Desire 510
- ISIS Drug Transit From Afghanistan To Europe Confirmed By Russia: Money Goes Into Terror Funding And In New Recruitments
- ISIS Kidnaps Iraqi Defence Minister’s Family, Executes Female Parliament Candidates