Pleased with the results of its earlier cost and job cuts – it turned a Q4 profit - Credit Suisse figures to do more of the same - make further cost and job cuts- which should lead to even higher profits.

[ by Melanie Gretchen ]

Credit Suisse's allocation of its 2012 profit may not reach some of its current employees.  That is, the ones whose jobs will be terminated under the Swiss bank's cost-cutting measures.  Net income for 2012's Q4 was 397 million Swiss francs($436 million), matching the bank's expectations, according to CEO Brady Dougan.  Nevertheless, the bank also posted a loss of 1.9 billion francs ($1.4 billion) for the fourth quarter – and somebody's going to pay for that.

Going forward, Zurich-based bank will increase its cost-cutting target by 400 million francs ($295), to 4.4 billion francs ($3.2 billion), by the end of 2015.  Apparently, the 10,000 job cuts the bank announced in October isn't going to cover the 1.9 billion franc ($1.4 billion) bill for legal costs including the rate-manipulation scandal.

In addition, changes by Mr. Dougan will include appointing a new co-head of investment banking and merging the bank's asset management division into its wealth management and private banking unit.  His cuts also intend to make the lines between wealth management and investment banking clearer.  To date, he has succeeded in reducing the bank's total compensation by 5% in 2012 from a year earlier, and in increasing revenue through collaboration among different divisions.

For further details, go to [Dealbook, 2/7/13].