Credit Suisse To Cut 1500 Jobs In London To Reduce Costs
Zacks Investment Research | Jun 09, 2017 03:16AM ET
According to a Reuters report, Credit Suisse (SIX:CSGN) Group AG (CS) is planning to reduce almost 1500 jobs in its London office by the end of 2018, per a person familiar with the matter.
The move is in line with Thiam’s restructuring initiatives to pare the company’s operations in London. Also, per the article, high amounts of bonus and costs of continuing business in London have led to losses. Thus, with a view to counter mounting expenses, the company is moving ahead with the layoff plan.
This move marks a change in company’s view regarding London, following Brexit. Credit Suisse is shifting attention to the Asian region and other European centers.
Another bank to follow suit is UBS Group (NYSE:UBS) . Per the article, it is considering shifting hundreds of employees from London because of Brexit. Previously, CEO Sergio Ermotti said that about 30% of the bank’s 5400 employees might be affected.
Credit Suisse has been making several efforts to improve its performance. Its initiatives to manage expenses might help it in maintaining profits in the upcoming quarters. Also, we remain encouraged by Thiam’s turnaround plan.
Shares of the company have gained 10.9% over the last one year, underperforming the Zacks categorized Banks - Foreign industry’s 23.6% rally.
Some stocks worth considering in the same space include Bank of N.T. Butterfield & Son LTD (NYSE:NTB) , KB Financial Group Inc. (NYSE:KB) and Banco de Chile (NYSE:BCH) .
Bank of N.T. Butterfield & Son and KB Financial Group sport a Zacks Rank #1 (Strong Buy) , whereas Banco de Chile carries a Zacks Rank #2 (Buy). You can see .
Bank of N.T. Butterfield & Son’s earnings estimates have been revised 2.1% upward for the current year, in the past 30 days. Also, its share price jumped 17.1%, over the last six months.
KB Financial’s current-year earnings estimates were revised 13.5% upward, over the last 30 days. Further, its shares rallied 32.7%, in the last six months.
Banco de Chile witnessed a 0.5% upward earnings estimate revision for the current year, in the past 60 days. Moreover, its shares gained 13.9% in the last six months.
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