"We believe management is doing all the right things in terms of shrinking the investment bank ... (and) cutting costs"
- JP Morgan analyst Kian Abouhossein
Credit Suisse is going to cut an extra 1 billion Swiss francs ($1.1 billion) of costs during the next three years, as a part of a cost-cutting plan that has already been announced. The bank is targeting 4 billion francs in cost savings by 2015 to bolster its profits. Earlier this week, Credit Suisse expressed its intention to fire 1,000-2,000 workers, as third-quarter net profit tumbled 63 per cent to 254 million francs, missing analysts' expectations of 370 million.
"We believe management is doing all the right things in terms of shrinking the investment bank ... (and) cutting costs," said JP Morgan analyst Kian Abouhossein
"We have realigned our business to better meet the demands of a changed regulatory and market environment and, in doing so, have substantially reduced risks," said chief executive Brady Dougan in a statement.
The Swiss blue-chip index SMI, a measure of the largest and most actively traded companies, lost 0.31 per cent to 6,606.57. The broader Swiss Performance Index fell 0.29 per cent to 6,097.45.
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