Swiss lender Credit Suisse is set to make more cuts at its investment banking division to try to balance it more evenly with its private banking arm.
The bank has already scaled back its rates trading business as well as shut down its commodities trading, and now looks to cut its leverage exposure by a further CHF70bn to improve its leverage ratio to 4.5% by next year end.
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It is still not clear on how the cuts will be made, but Brady Dougan, chief executive of Credit Suisse, said that it would mainly impact the investment banking arm.
"The bulk of that will be certainly in the investment bank and that primarily cuts across the two trading business, equities and fixed income. Within that though, I think it’s still an open question about how much will be reduced where," stated Dougan.
The bank recorded a net profit of CHF1.03bn in the three months to the end of September, which is a rise compared to CHF454m in the previous year, while its fixed income trading revenues increased by half, and equity trading revenues dropped 2%.
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By GlobalData
