ZURICH – Credit score Suisse is contemplating the way it might reduce prices additional after a dismal efficiency by the embattled financial institution previously quarter, SonntagsZeitung reported, citing senior sources.
“The numbers are catastrophic,” an unnamed senior banker informed the newspaper, including that workers morale may be very low.
Managers and the board of administrators at the moment are discussing a brand new, giant cost-saving plan, a second government informed the paper in an article printed on Sunday.
“The associated fee construction is simply too giant for the financial institution’s income potential.”
Credit score Suisse has beforehand described 2022 as a “transition” yr through which it's attempting to show the web page on pricey scandals that introduced a near-total reshuffle of high administration.
Discussions on the cuts are at a sophisticated stage, the paper stated, although it's unsure whether or not they are going to be introduced when Credit score Suisse reviews second-quarter earnings on Wednesday.
A spokesperson for Credit score Suisse declined to remark to Reuters on the newspaper report.
The financial institution warned in June that it could submit a loss for the quarter, its third in a row.
The lender stated then that it was aiming to speed up cost-saving measures launched as a part of its reorganisation final November.
Analysts count on a reported internet lack of 398 million Swiss francs ($414.02 million) for the quarter, Refinitiv information reveals.
Switzerland’s second-biggest financial institution has been hit by a string of pricey scandals and the exit of Chairman Antonio Horta-Osorio after he flouted COVID-19 quarantine guidelines.
Amongst its woes was a $5.5 billion loss on the default of U.S. household workplace Archegos Capital Administration and the shuttering of $10 billion of its provide chain finance funds.
($1 = 0.9613 Swiss francs)
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