Credit Suisse predicts financial markets will remain tough, after starting the year with a quarterly loss for the first time since 2008 amid a major restructuring. But as Hayley Platt reports, like many of its peers the Swiss bank's losses weren't as bad as expected
It was no surprise really. Credit Suisse boss Tidjane Thiam had already warned investors 2016 would be tough. He was right. Still the loss wasn't as bad as expected. Shares jumped almost 6 percent. (SOUNDBITE) (English) CMC MARKETS, MARKET ANALYST, MICHAEL HEWSON, SAYING: "Currently I think the CEO of Credit Suisse Mr Thiam needs to give clarity that he's getting his costs under control, at the same time maximising the parts of the business that are actually going to do well over the course of the next 6-12 months." Thiam, who took up the helm last July, plans to save more than 3 billion dollars by 2018. And shrink the headcount by 6,000. Switzerland's second largest lender said it was confident of meeting or beating its 1.7 billion dollar savings target by the end of the year. But it's going to cost 1 billion dollars to achieve it. And there's more damaging market turmoil to come. (SOUNDBITE) (English) CMC MARKETS, MARKET ANALYST, MICHAEL HEWSON, SAYING: "We've got an OPEC meeting on the 2nd June, we've got the FOMC meeting on the 14th and 15th June, we've got the Brexit referendum, we've got the Spanish general election soon after the Brexit referendum and we've got the Greek debt talks at the same time as concerns about global growth. Until we get some sort of clarity on any or all of that then I think investors are likely to remain even more risk adverse." There had been concerns over the bank's capital position. But its common equity tier 1 capital ratio, a measure of its financial strength, held steady at 11.4 percent. Although some way behind the 14 percent of its rival UBS.