Credit Suisse said it planned to axe up to 9,000 jobs, raise 4 billion Swiss francs and spin off its investment bank as it posted a SFR 4bn loss in the third quarter.
Switzerland’s second-biggest bank launched a strategic review as it tried to put an end to a series of scandals that have shaken the institution, saying the results were intended to create “a simpler, more focused and more stable bank”.
It also admitted that some clients had pulled funds in recent weeks at a pace that saw the lender breach some regulatory requirements for liquidity.
Saudi National Bank, the Kingdom’s biggest lender, committed to invest up to SFR 1.5bn to take a shareholding of up to 9.9%.
Credit Suisse said it also aims to separate out its investment bank to create CS First Boston, focused on advisory and capital markets, and hopes to attract third-party capital and set up a partnership with the new Credit Suisse.
The bank will create a capital release unit to wind down non-strategic, higher-risk businesses, while announcing the sale of a large part of its securitised products business.
Its reputation has been hit by a series of scandals, including a domestic prosecution involving laundering money for a criminal gang.
“This is a historic moment for Credit Suisse. We are radically restructuring the investment bank to help create a new bank that is simpler, more stable and with a more focused business model built around client needs,” said new chief executive Ulrich Koerner.
Reporting by Frank Prenesti for Sharecast.com
