C Suisse announces more than $990m in additional cost cuts

The expected delivery of $1.59bn of net savings in 2016.

Credit Suisse on Wednesday announced more than $990.6m in extra cost cuts as CEO Tidjane Thiam tries to compensate for challenging conditions which have hampered his restructuring of the lender.

Reuters reports that just over a year since Thiam laid out his strategy for the bank, analysts had expected Credit Suisse to take another axe to costs and pare back profit targets which had long been viewed as too optimistic.

"Given the unsupportive market conditions we are facing, the realization of our profit objectives plan is now more geared to the delivery of cost reductions, over which we have greater control than revenue growth," Credit Suisse said.

The bank said in a statement (excerpt):

'One year into the implementation of our plan, we believe that our strategy is working.........We have made strong progress in reducing costs, with the expected delivery of CHF 1.6 billion ($1.59bn) of net savings in 2016, thus increasing our operating leverage. A core objective of our strategy is to make the bank both more profitable and more resilient....

We are determined to stay focused on our key priorities of disciplined execution, profitable growth and the strengthening of our capital position. By 2018, we expect Credit Suisse to benefit from the measures we have put in place to create increased operational leverage, with a powerful core business generating a high-quality and more predictable earnings stream as the SRU shrinks.

In the course of 2016, we have taken a number of difficult but important steps that lay the foundations for a stronger, more resilient Credit Suisse in the future. As a result, we believe that we are well positioned to grow profitably and produce long-term value for our shareholders'.

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