Credit Suisse swung to full-year loss of 2.944 billion Swiss francs from a profit in 2014 after writing down the value of Donaldson, Lufkin & Jenrette, an investment bank it acquired in 2000.
Restructuring costs, «significant litigation items» as well as losses on the value of its own debt and on bad-bank activities set for disposal also took a chunk out of the results.
The Swiss bank said it will step up its cost-cutting efforts through 2018, including by cutting 4,000 positions, blaming «difficult market conditions» for the move.
Cost Savings Program Across the Bank
«Given the particularly challenging environment we face, we decided in the fourth quarter to accelerate the implementation of our cost savings program across the bank,» Chief Executive Tidjane Thiam said in a statement.
The bank said it is sticking to a target of investing 1.5 billion francs in growth initiatives, resulting in cost savings of 2 billion francs by the end of 2018 from a previously announced plan to cut 3.5 billion francs in spending.
Market Conditions Challenging
Credit Suisse said it will pay investors 0.70 francs per share in dividend, and that is aims to distribute a minimum of 40 percent of its operating free capital.
The bank said market conditions in January are still «challenging,» and that it expects markets to remain volatile through the quarter.
More to follow.
