Credit Suisse posted a small but unexpected profit as CEO Tidjane Thiam warned that geopolitical events would continue to stir up market volatility.
The bank made a net income of CHF41 million (£34 million, $42 million) in the third quarter, beating analysts’ forecasts of a loss of CHF150 million, according to a Bloomberg survey.
Credit Suisse said “all operating divisions were profitable” but CEO Tidjane Thiam warned that restructuring the bank would remain difficult in a volatile political environment.
“Looking ahead, we expect market activity to continue to be influenced by geopolitical and macro-economic uncertainty over the next several quarters and the outlook to remain challenging,” Thiam said in the bank’s results statement on Thursday.
“We still have a long way to go in our journey but we are fully mobilized to deliver in challenging market conditions on our key commitments to reduce cost, strengthen our capital base and drive profitable business growth,” he said.
Like many European investment banks, Credit Suisse has had to rethink its business model in an environment of low interest rates, low economic growth and increased regulation.
The bank’s CEO, Tidjane Thiam, has tried to steer away from the capital-intensive markets business towards providing more services for high-net worth individuals. In May, the bank cut around 100 jobs in its London-based global markets division.
Credit Suisse committed to slashing headcount by 6,000 people in 2016, and has made 90% of those cuts as of November 3, the bank said in a presentation to investors.
The bank’s stock has fallen more than 40% in the past 12 months.
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