Thursday, October 25, 2012

Look Who Is Cutting More Costs as Quarterly Profit Falls




Credit Suisse plans to save an additional 1 billion francs ($1.07 billion) in costs by the end of 2015, adding to the 1 billion-franc savings program announced in July and a 2 billion- franc expense reduction achieved since last year, Zurich-based Credit Suisse said in a statement today. Net income fell 63 percent to 254 million Swiss francs, missing the 415 million- franc mean estimate of nine analysts surveyed by Bloomberg.

Chief Executive Officer Brady Dougan is cutting costs and accelerating a capital buildup as Europe’s sovereign-debt crisis curtails client activity and hurts earnings. While the investment bank benefited from the increase in asset prices that lifted profit at U.S. competitors in the quarter, margins in wealth management fell to the lowest in at least five years…..

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