CREDIT SUISSE will cut an extra 1 billion Swiss francs of costs – including further job losses – as part of efforts to bolster its profits and capital position.

Volatile financial markets, a dearth of deals and tighter regulations in the wake of the financial crisis are forcing investment banks to slash costs, and the euro zone debt crisis has pushed many to cut back even more.

The Swiss bank said yesterday third-quarter net profit fell 63 per cent to 254 million francs (€210m), missing analysts’ average forecast of 370 million. It was hit by 1.05 billion francs in charges during the quarter, mainly linked to its own debt.

However, Credit Suisse stock rose 2.6 per cent after higher profits from the investment banking division, which benefited from a pickup in bond trading.

That unit offset Credit Suisse’s private banking business, where margins shrank and fresh funds won from wealthy clients significantly missed the bank’s own targets.

Credit Suisse said it was targeting 4 billion francs in cost savings by 2015, up from a goal of 3 billion francs it set in July and an earlier figure of 2 billion francs.

The bank, which is already cutting 3,500 staff or 7 per cent of its workforce, said job losses would be inevitable to achieve the extra savings, but did not say how many more staff would go.

It has already combined the separate operating platforms of its two main units – private banking and investment banking – and will increasingly shift information technology jobs to Poland and India as part of its cost-saving drive, according to finance chief David Mathers. – (Reuters)