The Swiss presented a transformation plan of historical significance Credit Suisse Financial institution due to disappointing quarterly reports. The Alpine nation’s second-largest bank on Thursday announced a multi-billion-franc capital increase, outsourcing investment banking and slashing thousands of jobs. And the management announced that the goal of the plan is to make the business profitable after losing the last period.
The Credit Suisse According to its quick report for the third quarter ending at the end of September
It posted a loss of 342 million Swiss francs (140.187 billion forints) after a quarterly profit of 1.008 billion the previous year. Sales revenue decreased 30% year over year to CHF3.804 billion.
In the first nine months, the loss amounted to 1.943 billion Swiss francs, while the company closed a year earlier with a profit of 1.064 billion.
Capital Raising, Outsourcing, Group Downsizing
The Credit Suisse It will issue 4 billion Swiss francs of new shares. Of this, the Saudi central bank can subscribe for 1.5 billion, thus obtaining approximately 10 percent of the share of the financial institution.
As part of the largest organizational restructuring in the Bank’s history, the investment banking business has been organized into a separate business unit, which will be managed under the name Credit Suisse First Boston in the future.
The financial institution aims to reduce its expenditures by 15 percent, or about 2.5 billion Swiss francs, by 2025. The projected cost of the transformation to the end of 2024 could reach 2.9 billion Swiss francs by the end of 2024.
The Swiss bank has begun a mass downsizing, in which about 2,700 jobs will be cut, and more layoffs will follow. According to the plans, the number of employees will decrease from 52,000 currently to 43,000 by 2025.
