More cost savings to be made, but most of the pain is over.
Credit Suisse posted a jump in first-quarter profit as year-earlier charges related to its own debt and bonus payments weren’t repeated.
The bank, led by CEO Brady Dougan, said it has achieved $2.64bn of cost savings and is on course to meet a goal of $4.65bn in cuts by the end of 2015. Credit Suisse combined its money-managing units into one division last year to boost efficiency and reiterated a commitment to a full-fledged investment bank as Swiss rival UBS scaled back.
'In an industry that still faces substantial restructuring, we have effectively completed the transformation to the new regime', Dougan said in the statement, adding that the bank made 'material progress in establishing a business model that is stable, high-returning and ready for the new regulatory environment'.
Dougan, 53, has said that he expects the profit contribution from the investment bank to rebound to about half of the group’s pretax earnings as competitors reorganize their businesses and markets improve. The unit contributed about 33% to the group’s pretax earnings in 2012.
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