[ad_1]
Credit Suisse is losing more people. This emerges from today’s publication of the results for the third quarter. Now the bank is talking about 400-450 million in “gross savings”.
So far there has been talk of 400 million. The increase that has taken place puts even more pressure on jobs. In the coming months, CS is likely to cut more than the 2,000 previously assumed jobs.
The need to cut costs intensifies after a disappointing quarter. The bank’s pre-tax profit fell by 30%. After taxes, the less is up to 38%.
A real accident. The background for this is high credit risk.
“In the first nine months of 2020, we recorded credit risk provisions of CHF 958 million, compared to a ten-year average of CHF 126 million,” CS said this morning.
The bank is paying a high price for its research course. The surge in bad loan provisions is the account for wild loans in the years leading up to Covid.
Of course, the leadership does not want to confirm this. Rather, it explains the sharp drop in profits with extra profits over the comparison period of 2019.
At the time, CS made a proud rubble with the sale of its fund platform. Now such silverware has become rare and CS cannot sell much anymore.
Gorgeous real estate gone, fund platform sold, six special profits gone.
In this way, the underlying problems of CS are visibly surfaced. They say: the proud bank of Paradeplatz “behaves” badly.
You can see this in the total income. They fell by 2% from July to September, and this in the Corona year, in which many global banks took off thanks to trade and government aid.
On the contrary, the CS has spent more. Plus 5% of the costs, nobody understands it. Especially not when earnings point to the downside.
The reason lies in the high wages, especially among investment banking traders. Business is booming, so otherwise well-paid Masters of the Universe are even more golden.
This comes to the fore in costs: plus 10 percent in the investment bank.
CS Switzerland also crashed. Wherever the bank has reported new dream results in recent years, there is a huge loss with a single customer.
52 million copyists. The hole was actually even bigger, it could be filled with profits elsewhere.
Presumably it is the same commodities client who caused the bang at UBS Switzerland. A week ago, UBS estimated the cancellation at 54 million.
CS Switzerland also sees red in other ways. The division, which flourished for some time under Thomas Gottstein, who became CEO, is taking a step back – at all levels: in terms of income, in terms of profit.
The demise for the NAB subsidiary, Neue Aargauer Bank, has a negative impact of 41 million. This is how much the integration of NAB into CS and the demise of the brand cost.
It looks really depressing at IWM, where, excluding special items, profits for the past three months have fallen by almost a third.
The worm is specifically in resource management. The profit had fallen “because of investment losses”. There are still 32 million, with a decrease of 72 (!)%.
The alleged pearl was naturally severely affected by the loss of the extra profit from the fund operation a year ago.
But there are also surprisingly big problems in that area that need to be raised.
There is also a lack of award-winning properties. “Investment losses were recorded in real estate funds,” the bank writes.
The CS under CEO Gottstein, however, paints a rosy picture.
“Credit Suisse achieved strong operational performance despite the ongoing effects of the COVID-19 pandemic,” the bank writes in its press release.
similar posts
Source link
