Shares of Credit Suisse Group (NYSE: CS) dropped in pre-market trading on Thursday as the investment bank swung to a huge loss in Q3 of CHF 4.034 billion versus a profit of 434 million in the same quarter last year. Analysts were expecting a loss of CHF 567.93 million.
The bank’s revenues tanked 30% year-over-year to CHF 3.8 billion.
Credit Suisse’s new CEO, Ulrich Körner commented, “The third quarter, and more broadly 2022 so far, have been significantly impacted by the continued challenging market and macroeconomic conditions, leading to a weaker performance for our Investment Bank in particular.”
As a result, the Swiss investment bank unveiled a new strategy and transformation plan which included a radical restructuring of its investment banking business in a bid to reduce risk-weighted assets, reducing the company’s cost base by 15%, among other measures.
