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.
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