Top CEO Warns About More Aggressive Cost Cutting

Hard Hat In Office Tray

Here's one top firm boss who looks like he believes banking is going through a period of structural change, rather than just another downturn.

More aggressive cost cutting will be necessary in the coming years, Credit Suisse CEO Brady Dougan told CNBC Thursday, adding that he expects the financial services industry to continue to operate in a volatile market environment.

Bloomberg reports that Credit Suisse Group has increased a target for cost reductions after posting a drop in third-quarter profit on an accounting charge related to its own debt.

The firm said it plans to trim a further $1.07bn in costs by the end of 2015. That follows the $1.07bn savings program announced in July and a $2.14bn expense reduction achieved since last year.

'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', Dougan, 53, said in a statement Thursday. 'At the same time, we have significantly cut costs and improved efficiencies across the bank. We are committed to deliver additional cost savings in subsequent years'.

Credit Suisse, which announced 3,500 job cuts last year, said Thursday it plans to achieve additional savings at the investment bank by driving synergies in the equities unit and continuing to 'rationalize' businesses in some regions in fixed income, underwriting and advisory. The company will scale back support functions and coverage of offshore clients in private banking, it said.

Credit Suisse is considering selling its exchange-traded- funds business, and doesn’t plan other asset-management sales beyond the ones announced in July, the company also confirmed.

Hit the link below to access the complete Bloomberg article:

Credit Suisse to Cut More Costs as Quarterly Profit Falls

Credit Suisse CEO: More Tough Times Ahead for Financials

image: © stephen jones

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