The drop was driven primarily by its Investment Bank’s poor performance owing to “higher volatility, widened credit spreads and muted primary issuance”.
The Swiss banking giant’s net revenue during the quarter declined to $3.83bn (CHF3.8bn) from $5.45bn (CHF5.4bn) a year earlier.
Further, the group’s pre-tax loss was $345.47m (CHF342m) when compared to previous year’s profit of $1.02bn (CHF1.01bn).
The bank which posted adjusted pre-tax income of $1.37bn (CHF1.36bn) in the third quarter of 2021, reported adjusted pre-tax loss of $92.93m (CHF92m) in the latest quarter.
Meanwhile, the groups’ quarterly total operating expenses stood at $4.14bn (CHF4.1bn).
Credit Suisse’s Wealth Management unit reported pre-tax income of $78.79m (CHF78m), representing 80% year-on-year (YoY) decrease.
The unit’s net revenue stood at $1.41bn (CHF1.4bn), down 18% from the previous year’s quarter.
The Investment Bank division reported $640m in pre-tax loss from a pre-tax income of $662m last year. The unit’s net revenues too plummeted 58% YoY.
The Asset Management unit saw a pre-tax income of $105.05m (CHF104m), down 21% YoY. However, its net revenue increased 15% YoY to $339.41m (CHF336m).
Credit Suisse Group chief executive officer Ulrich Körner said: “The third quarter, and more broadly 2022 so far, have been significantly impacted by the continued challenging market and macroeconomic conditions, leading to a weaker performance for our Investment Bank in particular.
“Our recent group level performance has been disappointing for our stakeholders.”
Commenting on the group’s future plans, Körner said: “From today, we are taking a series of decisive actions to re-focus Credit Suisse around the needs of our clients and stakeholders.
“Our new, integrated model will be focused on Wealth Management, the Swiss Bank, as well as Asset Management, and we will radically restructure the Investment Bank, strengthen capital, and accelerate our cost transformation.
“We believe these actions will lead Credit Suisse to a more stable performance and generate lasting value for our shareholders.”
To stem losses, the company unveiled plans to cut as many as 9,000 jobs by the end of 2025. Credit Suisse, in a statement, said: “A headcount reduction of 2,700 full-time-equivalent employees or 5% of the group’s workforce is already underway.”