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Credit Suisse to cut 3,400 jobs, raise cash as profits drop

Published:Thursday | October 22, 2015 | 10:00 AM
CEO of Swiss bank Credit Suisse Tidjane Thiam speaks during a press conference in Zurich, Switzerland, yesterday.

GENEVA (AP):

Credit Suisse said it plans to cut at least 3,400 jobs over three years in Britain and Switzerland and raise billions in a new share offering after its net profit fell 24 per cent in the third quarter.

The Swiss firm yesterday reported that net income attributable to shareholders dropped to 779 million Swiss francs ($815 million), from 1.03 billion francs a year earlier, mostly due to an "unfavourable market conditions" in investment banking. Revenues declined eight per cent to 5.98 billion francs.

The company specialising in investment banking and wealth management announced plans to issue new shares in moves expected to bring in over six

billion francs.

Credit Suisse's new CEO, Tidjane Thiam, said the results "reinforce the need for a restructuring of the bank" to reduce earnings volatility and to focus more on private banking and wealth-management clients. He said the results included a "resilient performance" in its Asian business.

"In the third quarter, difficult market conditions led to low client activity in both our investment banking and private banking and wealth-management divisions," he said in a statement. "This translated into lower profits and was particularly visible in our fixed-income sales and trading performance."