Loss of Credit Suisse in 2015 amounts to more than 11 billion reais (Fabrice Coffrini / AFP / SEE)
Credit Suisse closed 2015 at a loss, its first for a full year since 2008, after having to spend a billion dollar sum Depreciation in its investment banking business. The loss last year was 2.94 billion Swiss francs (the equivalent of 11.5 billion reais).
The earnings announcement, made on Thursday, the bank also said it will eliminate 4,000 jobs in 2016. Early in the morning, shares of Credit Suisse fell 11%, affected also by the bank's statement that sees a difficult start 2016.
"Market conditions in January 2016 remained challenging and we expect markets remain volatile for the remainder of the first quarter, with persistinto macroeconomic issues," said chief executive Tidjane Thiam.
In October, Thiam embarked on the largest renovation of Credit Suisse in nearly a decade. He raised new capital from shareholders, increased its focus on wealth management, reduced its investment bank and cut jobs.
Just over four months later, many analysts are still not sure about how the Credit Suisse reach its growth targets, which include more than double its pre-tax income in the Asia-Pacific region by 2018.
As expected, the bank recorded a charge of depreciation of 3.8 billion francs (more than 15 billion reais) in the fourth quarter as a result of the new strategic direction Thiam is chasing. The charge was primarily related to the acquisition of Donaldson investment company, Lufkin & Jenrette, made in 2000.