Credit Suisse announced a big loss, will reduce the number of employees

Credit Suisse, the second largest bank in Switzerland, had expected a loss of 400 million Swiss francs in the third quarter of the year and announced a loss of 4,034 million Swiss francs.

Credit Suisse announced its financial results for the third quarter of 2022 and its restructuring strategy.

The bank, which is in a difficult situation after years of various scandals, reported a loss of 4,034 million Swiss francs in the third quarter of this year, against an expected loss of 400 million Swiss francs.

In the same period last year, the bank reported a profit of 434 million Swiss francs.

COST REDUCTION OBJECTIVE

Credit Suisse said the loss reflected a CHF3.7bn impairment in deferred tax assets related to its strategy review.

The bank, which is under pressure from investors, also said it will make a strategic change in its activities to eliminate litigation costs that negatively affect investment banking performance and profits.

Credit Suisse will radically restructure investment banking and focus more on the rich. It also aims to reduce its costs by 2.5 billion Swiss francs by 2025.

PLAN TO LAY OFF 2,700 PEOPLE BY THE END OF THE YEAR

By the end of this year, the bank will lay off 2,700 people, which corresponds to 5 percent of the total workforce, and will reduce the total number of employees to around 43,000 by the end of 2025, laying off some 9,000 more.

Credit Suisse announced that it will raise 4 billion Swiss francs through the issuance of new shares to qualified investors and through a free issue.

Once the symbol of Switzerland’s “credibility”, the bank’s reputation was tarnished by the money laundering scandal and the fines and scandals that followed. (AA, REUTERS)