Bloomberg News reports that the CEO signaled on Thursday that Credit Suisse is on course to cut $1.7bn in costs and 6,000 jobs this year as part of his wider overhaul that runs through 2018. Yet he declined to comment on whether the bank will post a full-year profit, and said many “uncertainties” cloud the horizon.
“A quarter remains a quarter,” said Peter Casanova, an analyst at Kepler Cheuvreux in Zurich, with a hold recommendation on the shares. “Credit Suisse is not yet out of its ‘mid-life crisis’ - it has to conclude its transition phase.”
Since taking over a year ago, Thiam, 53, has struggled to stem a slide in shares that eroded about 56% of the company’s market value. Like his counterpart at Deutsche Bank, John Cryan, Thiam is trying to overhaul the bank at a time when rising capital requirements, slumping client activity and record-low interest rates are eating into profitability. Credit Suisse posted a full-year loss in 2015.
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