Switzerland’s second largest bank, Credit Suisse, is seen here next to a Swiss flag in downtown Geneva.
Fabrice Cofrini | AFP | Getty Images
Swiss credit Thursday saw a quarterly loss far worse than analysts’ estimates as it announced a massive strategic overhaul.
The troubled lender posted a net loss of 4.034 billion Swiss francs ($4.09 billion) in the third quarter, compared to a loss of 567.93 million Swiss francs expected by analysts. The figure was also well below the 434 million Profit in Swiss francs shown for the same quarter last year.
The bank noted that the loss reflected an impairment of 3.655 billion Swiss francs related to the “revaluation of deferred tax assets following the comprehensive strategic review”.
Under pressure from investors, the bank revealed a major overhaul of its business in a bid to address underperformance at its investment bank and following a series of legal charges that weighed on profits .
In its widely anticipated strategic shift, Credit Suisse has pledged to “radically restructure” its investment bank to significantly reduce its exposure to risk-weighted assets, which are used to determine a company’s capital needs. bank. It also aims to reduce its cost base by 15%, or 2.5 billion Swiss francs, by 2025.
Credit Suisse expects to incur restructuring charges of 2.9 billion Swiss francs by the end of 2024.
This is news in development and will be updated shortly.