Credit Suisse announces big losses, more job cuts

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The reorganization effort was underway though this optimism was quickly quelled after Credit Suisse's recently reported 2016 net loss of $2.43, the group's second straight year of losses.

In a research note, JP Morgan analysts Kian Abouhossein and Amit Ranjan said Credit Suisse's restructuring was "finally bearing fruit", adding that the bank was their top European investment bank pick.

Chief executive Tidjane Thiam is preparing to swing the axe at Credit Suisse once again and cut thousands more jobs after the bank slumped to a worse-than-expected £1.9bn quarterly loss.

In the fourth quarter, the bank paid out $2 billion to settle U.S. claims it mis-sold mortgage bonds.

Last month, the United States authorities announced a $5.28 billion settlement with Credit Suisse over its role in the sale of the kind of toxic securities that led to the global financial crisis of 2008.

Mervyn Chow 520

"2016 was the first full year of implementing our new strategy and it was a challenging and busy 12 months", said chief executive Tidjane Thiam.

Credit Suisse shares have risen 3.5 percent since the beginning of the year. Investment bankers in NY and London bore the brunt of some 7,250 jobs eliminated previous year.

The company said it achieved 1.9 billion Francs ($1.9 billion) in savings in 2016 - more than 500 million Francs ($500 million) above its target. "Thanks to our strong client franchise and the dedication of our teams, we have made good progress on our key objectives".

While the settlement resolved a major source of legal uncertainty for the bank, it put a dent in its capital buffers.

Revenues rose 23 percent to 5.18 billion francs in the fourth quarter compared with a year earlier, propelled by the best fourth-quarter performance for its investment banking and capital markets segment in four years.

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