Swiss private banking giant Credit Suisse has pledged to cut costs by another CHF1bn ($993.6m) and lowered profit goals to cope up with challenging market conditions.
The bank lowered its operating cost base target for 2018 to less than CHF17bn from the previously announced target of below CHF18bn, and raised planned total net cost savings target to more than CHF4.2bn from CHF3.2bn by 2018.
It reduced 2018 pre-tax income targets for its Asia Pacific arm to CHF1.6bn, and adjusted pre-tax income target for its International Wealth Management (IWM) unit to CHF1.8bn.
The bank also confirmed a target of CHF2.3bn for its Swiss operations for 2018.
“We expect to exceed our cost reduction targets with a projected CHF 1.6 billion of net cost savings by end-2016,” Credit Suisse said.
However, the bank added that it will continue to invest in people and technology in all divisions.
“Given the unsupportive market conditions we are facing, the realization of our profit objectives plan is now more geared to the delivery of cost reductions, over which we have greater control than revenue growth. This also leaves us with potential upside, should market conditions improve,” the Swiss bank said.