Cashstrapped Credit Suisse considers halving its bonus pool following £1.7bn loss

Credit Suisse may reduce total bonuses by 50% as the bank’s struggling investment bank looks to cut costs. bloombergIt has been reported.

The challenges of 2022 presented challenges to the Swiss asset management company when its share price plunged by 67 percent.

In the nine months to September 2022, Credit Suisse turned in a pre-tax loss of CHF1.94 billion (£1.73 billion), compared to a profit of CHF 1.06 billion (£946.4 million) in the same period in the year. Previous.

Credit Suisse also announced major restructuring plans last Oct amid rumors that it was at risk of collapse.

The company wanted a A cash injection of £3.46 billionInvestors through a share sale backed Saudi National Bank. He warned that it would need to reduce 9,000 jobs by 2025.

The bank has been stung by a string of scandals, from the collapse Archegos Capital Management to the bankruptcy of Archegos Capital Management. Greensill.

The bank announced the restructuring plan in October. It admitted that it might be more difficult to implement the strategic initiatives or achieve the related goals and objectives if there was a reputational damage from past events or reactions to our strategic initiatives.

Major banks are experiencing a sharp decline of income from IPOs, mergers and acquisitions. This severe drop in revenue is forcing them reconsider their bonus plans.

Goldman Sachs is said to be considering a 40% reduction in its bonus pool, while it will start to reduce 3,200 jobs today. The Financial Times reported that the bank’s private-jet policy would be reviewed.

Wall Street giants JPMorgan, Citi, and Bank of America are reportedly looking at reducing their bonus pools by 30%.

Credit Suisse declined comment.