Credit Suisse eyes new cuts as profits plunge

Credit Suisse eyes new cuts as profits plunge
Photo: Giorgia Xenakis (File)
Swiss banking giant Credit Suisse said on Thursday that third-quarter net profit plunged 63 percent to 254 million Swiss francs ($225.6 million) and that it would enact further cost cutting measures.

The net profit slightly exceeded the 230 million francs expected by analysts surveyed by Swiss financial news agency AWP.

However the bank increased its intake of new funds by 20 percent compared to the level the previous quarter to 5.3 billion francs and said that assets under management rose by 3.1 percent to 1.25 trillion.

We are successfully executing on the strategic measures we began last year," said chief executive Brady W. Dougan said in a statement.

We have realigned our business to better meet the demands of a changed regulatory and market environment and, in doing so have substantially reduced risks," he added.

While Credit Suisse said it has already significantly cut costs and improved efficiencies, it announced further it would seek to make an additional billion in cuts in 2014 and 2015 to take total savings to 4 billion francs.

Thanks to such measures Credit Suisse will be able to attain its target of 15 percent return on equity over the business cycle, said Dougan.

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