Credit Suisse expects CHF1.5 billion pre-tax loss in Q4

Credit Suisse revealed on Wednesday that it expects a pre-tax loss of up to CHF1.5 billion in the fourth quarter of the financial year.

The Swiss bank is now preparing for big strategic changes and radical restructuring of its business.

The company said in the official announcement:

These decisive measures are expected to result in a radical restructuring of the Investment Bank, an accelerated cost transformation, and strengthened and reallocated capital, each of which are progressing at pace.

The latest forecast follows the previous two quarters that also registered massive losses. In the second quarter of 2022, the investment bank posted net losses of CHF 1.59 billion CHF342 million in the third quarter.

Credit Suisse

In July, the bank appointed Ulrich Körner new Group Chief Executive Officer to replace Thomas Gottstein.

Credit Suisse noted that client activities have been impacted by economic challenges and market environment.

The bank stated:

The Investment Bank has been impacted by the substantial industry-wide slowdown in capital markets and reduced activity in the Sales & Trading businesses, exacerbating normal seasonal declines, and the Group’s relative underperformance.

The company is now working towards reducing 15% of its operational costs by 2025 and is targeting to reduce CHF1.2 billion by the end of 2023.

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