Credit Suisse, the second largest in the Swiss banking sector, said on Wednesday that it expects a potential loss for its investment bank in the second quarter but also for the group as a whole.
The bank, shaken by repeated scandals, spoke of market conditions still “DifficultAnd it warned in a press release of its impact on the activities of its investment bank in April and May. Between the geopolitical situation since the invasion of Ukraine, the tightening of monetary policies and the easing of economic support measures for Covid-19, the situation has been “increased volatility“and the”weak“The outflow of funds from its clients, she explains, also indicates a deleveraging movement on the part of its clients, particularly in the Asia Pacific region. His income has remained from the consulting business.”flexibleThe bank, said, is active in merger and acquisition advisory and IPOs. Its brokerage revenue benefited from increased market volatility, but it posted a performance.”uneven‘, she added.
Combined with lower levels of issuance in the capital markets and widening credit spreads, market conditions weighed on the financial performance of its investment bank in April and May, Credit Suisse said. The bank has issued a series of profit warnings in recent quarters after it has been plagued by numerous scandals since the collapse of British financial firm Grencelle and the collapse of US Archegos Fund in March last year.
At 9:44 GMT, the measure fell 4.77% to 6.39 Swiss francs, marking the worst performance of the SMI, the benchmark index of the Swiss Stock Exchange, down 0.43%. Since the first turmoil linked to Grencelle’s bankruptcy in March 2021, the title has lost nearly half its value in the stock market. The bank confirmed in the statement that 2022 will be the year “from movingIts leaders are trying to raise the bar by revamping the investment bank.
“We are accelerating cost initiatives across the group with the goal of maximizing savings from 2023The bank said in its statement, and promised more details on that front on Investors Day on June 28. According to Bloomberg, citing informed sources, the bank is preparing for a new round of job cuts. In contact with AFP, the bank declined to comment on this information.
As with cost-cutting measures implemented in the past, the likely outcome is “Further eroding employee moraleThe reaction of Andreas Venditti, analyst at Vontobel. At the end of the first quarter, Credit Suisse employed 51,030 people worldwide.