Credit Suisse is cutting jobs at its equities business in Asia, the second time in two months the Swiss bank has done so, as business in the region cools.
Zurich-based Credit Suisse is showing as many as 35 equities bankers in Asia the door after a second-quarter revenue drop, «Bloomberg» reported.
The move will hit trading, sales, prime brokerage and research jobs in the area, a source said. The jobs are the latest in a round of cuts which began earlier this year and is set to end in June.
Last month, Credit Suisse said investment banking revenue tumbled 41 percent in the second quarter, due in part to a poor showing from equities derivatives which dropped 16 percent, as market volatility in China and emerging markets ebbed.
Edged Out by Rival
The Swiss bank was edged out by Morgan Stanley as the second-largest in Asia-Pacific equities last year, research firm Coalition said in March. Hometown rival UBS topped the league table.
In an interview with finews.com in February, Credit Suisse's Asia head Helman Sitohang conceded weakness in the region and tempered expectations for the bank to keep pouring money into Asia.
Sitohang is paring back riskier investment banking activities while seeking to bolster more long-term and lucrative private banking business.
Recent Departures
finews.asia reported recently on two senior departures at CS. Asia cash equities co-head Donald Lee, who is also the bank's head of client trading and execution in the region, is leaving. George Chow, co-head of investment banking and capital markets for China, is also departing to join a Chinese firm as a senior executive.
The departure of the two senior bankers comes shortly after the bank let go roughly six equities bankers in Hong Kong and Tokyo. The cuts were made amid speculation that Credit Suisse's business in Asia continued to weaken.
Private Bank Hiring Sputters
The region is a cornerstone of Chief Executive Tidjane Thiam's efforts to turn around the bank, which has been hampered by setbacks such as two cash calls, a $5.28 billion U.S. mortgage mis-selling settlement, and an investor backlash on executive pay.
In December, Thiam was forced to walk back the region's pre-tax profit target by 500 million Swiss francs and reinforced spending cuts in the region. Hiring in the wealthy arm stalled in the first quarter, as finews.com reported.
