Credit Suisse, UBS: dark horizon for workers

UBS and Credit Suisse send clear signals: cutting costs is the first step, possibly within the year.

Q3 results showed, in fact, that the two banks are still spending too much. UBS saw its revenue shrink losing revenue from the wealthy customers and restless showing on the face of trading. Income, in practice, have fallen faster than the process of reducing the part of the bank charges. Instead Credit Suisse had almost reached the target in 2016, but in the third quarter expenses were up 2%.

Investors have had little mercy, pointing to expect more effort in scaling the outputs via the most effective of all, or to downsize staff.

UBS private banking head Juerg Zeltner recently told «Finanz und Wirtschaft» that a cost-cutting program disclosed last year was largely over. After cutting 400 wealth management jobs to September, Zeltner said a «a considerable reduction» would take place before year-end.

Even the CEO of Credit Suisse, Tijane Thiam, was concise about a new thrust on cost reduction which will be discussed next December 7th at Investor's day:  "We can still do much more on saving costs. This is just the start."

The present situation does not promise good news. In 2016, the bank axed 5,400 jobs, 3,500 were external consultants and another 1,300 were contractors, as Swiss daily "NZZ" reported. That means that Credit Suisse actually only cut 623 permanent employees this year.