Credit Suisse posts profits rise but cuts 3% of staff

1st November 2011, Comments 0 comments

Swiss banking giant Credit Suisse said net profit for the third quarter rose 12 percent from a year ago to 683 million francs (562 million euros, $776 million), but said it would cut 3 percent of total staff.

As the group employed 50,700 people at the end of September, its latest cost-cutting programme would see a reduction of about 1,500 jobs.

The group did not specify the departments targetted for cuts, but said it hoped to save 800 million francs by 2013 from the reductions.

All three of Credit Suisse's main business sectors -- asset management, investment banking and private banking -- reported poor earnings during the quarter.

Investment banking posted a loss of 190 million francs, while asset management recorded a 32-percent plunge in profit before taxes.

Private banking meanwhile also recorded a sharp drop of 78 percent from a year ago, as the bank set aside massive provisions for two tax litigation cases.

They include a 150-million-euro (183-million-franc) settlement announced in mid-September to end a probe by German authorities into whether the bank helped Germans to evade taxes.

Another 295 million francs have been set aside for a similar probe in the United States.

© 2011 AFP

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