Credit Suisse had a substantial pretax loss in the first quarter. The bank has however been able to reduce costs substantially, reaching more than half of the targeted cuts of staff numbers.
The net loss of 302 million francs compares with a profit of 1.1 billion a year earlier, the company said in a statement today. Analysts expected a loss of 474 million francs.
«In the first quarter of 2016 and particularly in January and February, we operated in some of the most difficult markets on record with volumes and client activity drastically reduced,» said CEO Tidjane Thiam in today's release. «While we saw tentative signs of a pick-up in activity in March and then in April, subdued market conditions and low levels of client activity are likely to persist in the second quarter of 2016 and possibly beyond.»
Net New Money in Wealth Management
The bank's wealth management performed strongly in the challenging environment, generating profitable growth, the bank said. Together, the divisions generated approximately 1 billion of adjusted pretax income. Asia Pacific, International Wealth Management and the Swiss Universal Bank attracted 4.3 billion, 6.9 billion and 3 billion francs of net new assets, respectively.
Credit Suisse in the first quarter achieved cost cuts amounting to more than half the 1.4 billion francs it has targeted for the full year. To do so, it has reduced the headcount by 3,500, with the full-year target at 6,000.
