Credit Suisse steps up its cost cut­ting drive

Kuwait Times - - BUSINESS -

ZURICH: Credit Suisse, Switzer­land’s sec­ond-big­gest bank, said yes­ter­day it was step­ping up its cost cut­ting drive as mar­ket tur­bu­lence would crimp the per­for­mance of its wealth man­age­ment units. The bank said it now aims to make 4.2 bil­lion Swiss francs (3.8 bil­lion eu­ros, $4.2 bil­lion) in sav­ings by the end of 2018, up from its pre­vi­ous tar­get of 3.8 bil­lion. It said it aims to re­duce oper­a­tional costs to 17 bil­lion Swiss francs by 2018, in­stead of 18 bil­lion. Credit Suisse has been un­der­go­ing a mas­sive cost-cut­ting pro­gram since Tid­jane Thiam, a for­mer in­surer, took the helm in Oc­to­ber last year. It shook up its struc­ture, piv­ot­ing away from risky in­vest­ment bank­ing to­wards wealth man­age­ment. But the bank low­ered the earn­ings tar­get for its wealth man­age­ment unit, say­ing “we have seen ma­jor changes in the mar­ket en­vi­ron­ment and po­lit­i­cal out­look, which have neg­a­tively im­pacted the mar­ket-de­pen­dent por­tion of our tar­gets.” It now ex­pects the in­ter­na­tional wealth man­age­ment unit to earn 1.8 bil­lion Swiss francs in 2018, down from its ear­lier tar­get of 2.1 bil­lion, due to lower com­mis­sions on as­set man­age­ment.

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