Facing another quarter of losses when it reports earnings on Wednesday, Credit Suisse could announce further savings measures including job cuts.
Indications are that Credit Suisse will implement further cost reductions, which could be announced as soon as Wednesday when it presents its results for the first six months of the year.
Credit Suisse needs to cut costs further, a report by the «Sonntagszeitung» (in German, behind paywall) said over the weekend. According to a senior bank manager, consultations are now taking place between the executive board and the board of directors around a new, large savings package. «The cost apparatus is too big for the bank's revenue potential,» according to a source quoted by the news outlet.
Credit Suisse had no comment on the matter. But according to the newspaper, consultations on new measures are at an advanced stage, although it is uncertain whether there will be an announcement as early as Wednesday.
While the extent of a new savings program has not yet been revealed outside the bank, it is clear that further jobs are at risk, according to the report
Earnings Collapse
«An additional cost-cutting program would not surprise me, as CS is currently seeing its revenues collapse,» the report said quoting Vontobel analyst Andreas Venditti.
Financial analysts expect Credit Suisse to post a loss of 206 million Swiss francs ($214 million) in the second quarter of 2022, with a full-year loss of around 400 million francs.
