Credit Suisse is putting itself on an even tighter budget, deepening already-planned cuts to slice an additional 1 billion Swiss francs ($1.1 billion) from its expenses. As it does so, it will cut additional jobs and possibly sell off its ETF business, seeking to make up for a plunge in profits of 63%.
Bloomberg reported Thursday that although the investment bank was able to gain from increased bond trading that also boosted profits at its U.S. competitors during the quarter, its private banking business suffered, and wealth management margins hit their lowest level in at least five years.
The bank took an accounting charge of 1.05 billion francs in Q3 that drove down its profits; the charge came because of an accounting rule governing the theoretical cost of debt buyback in a fluctuating market.
