C Suisse in spotlight after UBS earnings slump

Tidjane Thiam

Credit Suisse’s shareholders are seeing from rival UBS that pursuing a steadier business model may not result in stable profit.

Bloomberg News reports that Credit Suisse on Thursday reports its first quarterly results since an October overhaul in which CEO Tidjane Thiam adopted a similar model to UBS: shrinking the trading unit and increasing the focus on wealth management, particularly in Asia. A slump in earnings at UBS’s wealth-management and investment-banking divisions Tuesday sparked its biggest stock drop in more than a year and sent Credit Suisse’s shares down 3.7%.

Credit Suisse is set to post a net loss of $4.2bn in the fourth quarter, sparking the first full-year loss since 2008, as it writes down a substantial part of the $6.2bn of goodwill at its investment bank. Analysts estimate a decline in pre-tax profit at every one of the bank’s units in the first three months under the new structure.

To access the complete Bloomberg News article hit the link below:

Credit Suisse Profit Challenge in Focus After UBS Wealth Slump

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