Credit Suisse sees tough markets ahead after loss
ZURICH – Credit Suisse predicted on Tuesday financial markets would remain tough, after the Swiss bank started the year with a quarterly loss for the first time since 2008 amid a major restructuring.
The result, which comes as Chief Executive Tidjane Thiam makes sweeping cost cuts and implements a new strategy, received a guarded welcome from analysts and investors, who had expected the 302 million Swiss franc ($311 million) loss to be steeper.
But Thiam cautioned of an uncertain future. “While we saw tentative signs of a pick-up in … March and then in April, subdued market conditions and low levels of client activity are likely to persist in the second quarter of 2016 and possibly beyond,” he said in a statement.
Earlier warnings from Thiam that 2016 would be a difficult year had prepared investors for the worst. The average forecast from nine analysts polled by Reuters was for a 424 million franc loss. Credit Suisse shares jumped more than 4 percent in early trade. -Reuters