After volatile markets prompted Credit Suisse Group to write off about $1 billion on risky securities over six months, the bank is mulling further cost reductions at the global markets unit.
The Switzerland based bank was among world’s big wealth managers who targeted millionaire clients in oil-rich Nigeria.
The shares of the company have been on the offer in Swiss stock market, making it the second-worst performer on the Bloomberg Europe Banks and Financial Services Index.
The multinational financial services holding company, headquartered in Zürich operates the Credit Suisse Bank and other financial services investments. As at end of 2015, the bank had 48,200 employees worldwide; 3,840 relationship managers globally; and 1.214 trillion of Assets Under Management (AuM) in CHF.
“In global markets, having completed the right-sizing in terms of capital consumption, we are working” with Brian Chin, who runs the division, to identify further savings, Tidjane Thiam, Chief Executive Officer, Credit Suisse Group said at a conference in London on Tuesday. The unit, housing securities trading, will probably post a third-quarter profit, he said.
“I’m not surprised that they’re cutting back in the global markets unit,” said Chirantan Barua, an analyst at Sanford C. Bernstein with an underperform rating on the shares. “Securities units will be a permanent restructuring fixture among European banks. It’s not a good environment to deleverage –it’s a tough market.”
