Credit Suisse posts record Sfr8bn losses
Thursday 12 February 2009
Another day, another unwanted record for the Swiss banking community. Just 24 hours after UBS posted the country's highest annual corporate loss, Credit Suisse revealed its own worst ever numbers, as losses in 2008 hit Sfr8.2bn (£4.9bn).
Credit Suisse's chief executive, Brady Dougan, admitted that the results were "clearly disappointing", following the revenue collapse at its investment banking division. He added that the bank faced 2009 with renewed confidence.
The terrible results were compounded by a worse-than-expected last three months of the year, described by analysts at Keefe, Bruyette & Woods as "a horrible quarter". Losses between September and December soared to Sfr6bn, outstripping market expectations of -Sfr3.7bn.
The investment banking arm was responsible for pre-tax losses of Sfr14.1bn in 2008, a staggering turnaround from the Sfr3.64bn profit the previous year. Over half the losses came in the fourth quarter "as the widespread market disruption intensified". The division saw billions wiped off its bottom line following writedowns in the leveraged finance and derivatives businesses. It was also hit by "significant losses" from ineffective hedged positions and the widening of credit spreads.
The division is set to be overhauled as the bank seeks to cut risky operations. It has also heavily reduced its exposure to risky assets. The bank has slashed bonuses by 60 per cent to a Sfr2bn pool.
- 1 Heavy metal producer's corpse to be mutilated by models as per his dying wish
- 2 Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
- 3 Nineteen-year-old student left gifts for parents before taking her own life
- 4 Deliberately urinating before sex can increase risk of urinary tract infections
British Muslim leaders outraged after Eric Pickles says followers of Islam should 'prove their identity'
UK terror fears: My jihadist son returned from Syria mentally scarred – now he is being ignored
Nigel Farage: NHS might have to be replaced by private health insurance
Billy Crystal: 'Stop shoving gay sex scenes in my face'
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
David Cameron says anyone criticising Eric Pickles' letter to Muslims 'really has a problem'
iJobs Money & Business
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...
£16000 - £25000 per annum: Recruitment Genius: This is an exciting opportunity...
£45000 - £47000 per annum + bonus + benefits: Ashdown Group: Java Developer / ...
£35000 - £38000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...