As Credit Suisse denies job cuts, another bank dumps London staff

As Credit Suisse denies job cuts, another bank dumps London staff
Credit Suisse Is Said to Be Weighing Hundreds of Job Cuts
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December 12 is Credit Suisses 2018 investor day, but Bloomberg thinks the Swiss bank has decided it needs to do something about its cost base before next year. Following a CHF96m loss in the global markets division in the third quarter, Bloomberg says the Swiss bank is contemplating cutting “100s of jobs” to lower costs before 2018 is out.

Credit Suisse denies this. In a statement, the bank said the notion that it is “weighing hundreds of active job cuts is unfounded,” and that it will, “continue to invest in talent” in order to grow revenues in its wealth management and investment banking businesses. Nonetheless, earlier this month, the bank announced an additional CHF100m in restructuring costs before year end. Whos most at risk? Not Credit Suisses equity derivatives professionals, who have had a great year. By comparison, securitized products, leveraged finance, FX and structured credit had a difficult third quarter.

Our FTSE 100 performance model, based on sterling, oil, lead indicators and GEM equities, points to 14% relative upside, global equity strategist Andrew Garthwaite said in a note. He and his team upgraded UK equities to overweight. It comes as Brexit negotiations threaten to plunge the UK into political chaos.

If Credit Suisse is cutting fewer than 100 jobs, it will not be the only one. As we were first to report last week, Berenberg jettisoned its London hiring plans and is resetting headcount to the level of 2017. Market insiders say Numis Securities has also been making some cuts in London.

Numis is understood to have made “notable” headcount reductions last week, with departures across research, sales and corporate finance. They include Oliver Cardigan, an MD in corporate finance who joined from Rothschild in 2006. Numis and Cardigan didnt respond to a request to comment on the exits, but colleagues confirmed their occurrence and said around six people have gone.

Like Berenberg, Numis had been adding London jobs. Numis accumulated 13 additional registered staff between November 2017 and November 2018 according to the Financial Conduct Authority – an increase of nearly 9%.

Investment in talented individuals across the business has been a key priority during the year as we seek to strengthen and diversify the business for the future, said the banks co-chief executive officers in September, after revealing the new recruits would dent full year profits. Despite concerns about the revenue effects of MiFID II legislation, Numis hired three top ranked analysts from BNP Paribas in August, and the head of institutional equities sales from Bank of America Merrill Lynch in May.

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Credit Suisse said: Political uncertainty is extreme currently, but we would argue this is fully reflected in investor positioning in sterling and UK equities.

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