Connect to share and comment
One of Switzerland’s largest banks reported its first quarterly loss in a three years.
Credit Suisse, one of Switzerland’s largest banks, reported its first quarterly loss in three years on Thursday as its core businesses experienced a slowdown in the weak global economy, the New York Times reported.
Credit Suisse reported a loss of $698 million for the last three months of 2011.
The second-biggest Swiss bank blamed its fourth quarter losses on “adverse” markets and costs to reorganize the investment bank, Bloomberg reported.
The bank has made important changes to cut the risk profile of it investment bank division and also said it is cutting its 2011 bonus pool by 41 percent.
More from GlobalPost: Credit Suisse announces 1,500 job cuts globally
"Our performance for the fourth quarter 2011 was disappointing," said chief executive Brady W. Dougan. "It reflects both the adverse market conditions during the period and the impact of the measures we have taken to swiftly adapt our business to the evolving market and regulatory requirements.''
Credit Suisse employs about 50,000 staff worldwide and manages more than $1 trillion in assets.
“These were very weak results by any standards,” Christopher Wheeler, a London-based analyst at Mediobanca SpA told Bloomberg. Wheeler, who has a “neutral” rating on the stock added, “given the decline in profitability in wealth management, it’s clear there are problems across the board.”