Credit Suisse reports profit loss exceeding 2.9 bln in 2015

The Zurich-based Swiss bank Credit Suisse reported Thursday a net loss of 2.94 billion Swiss francs last year (2.94 billion U.S. dollars).

Investment sector adjustments, restructuring costs and other factors including litigation items were the main driving forces behind negative results.

A goodwill impairment charge incurred as a result of new strategic direction, structure and organization and predominantly related to the acquisition of U.S. investment bank Donaldson, Lufkin & Jenrette in 2000 led to amortisation costs amounting to 3.79 billion Swiss francs in 2015's last quarter, Switzerland's second largest bank revealed.

"Given the particularly challenging environment we face, we decided in the fourth quarter to accelerate the implementation of our cost savings program across the bank," Tidjane Thiam, CEO of Credit Suisse said in a statement.

"We have identified and actioned initiatives that will permanently reduce our fixed cost base, resulting in cost savings of 500 million Swiss francs per annum on a full year run-rate basis," he added.

Part of a major restructuring program, 4,000 jobs, from employees, contractors to consultants are to be cut worldwide in the comings years.

"Combined with the measures already implemented in the fourth quarter (including the transfer of our U.S. private banking) the cost savings actioned by the end of January will represent 1.2 billion Swiss francs per annum, or 34 percent of the 3.5 billion Swiss francs of savings targeted by end-2018," Thiam explained. (1 U.S. dollar = 1 Swiss franc) Endit