Credit Suisse posts full-year loss
(5 February 2016 – Switzerland) Credit Suisse has reported its first full-year loss since the 2008 Global Financial Crisis (GFC).
The bank’s shares dropped more than more 12 percent following the announcement on Thursday to their lowest level since 1992, pushing its 2016 plunge to over 30 percent.
The bank posted a 2015 net loss of 2.94bn Swiss francs (A$4.11 billion)
Chief Executive, Tidjane Thiam, who took over in July, said he would follow through with his plan to focus more on wealth management in emerging economies and cut costs in the investment bank.
“We have a clear strategy, clearly we are implementing it in difficult markets and our outlook for the first quarter remains very cautious,” Thiam said.
“We have very unique market conditions and they are challenging, but fundamentally we are maintaining the objectives and the targets we have presented.”
Four months after setting out his strategy, analysts are uncertain if Thiam and Credit Suisse will hit growth targets, which include more than doubling Asia Pacific pre-tax income by 2018.
The lender said it saw net outflows of funds in two of its three main wealth management divisions during the period, though its Asia Pacific target market was the exception.
The bank said it had fast-tracked cost savings, including about 4,000 job cuts.
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