UPDATE 1-Credit Suisse axes 75 jobs in Britain
* Cuts come the day after 400 job losses at Barclays
* CS continues to hire in other areas
* Has gained market share after credit crunch
By Douwe Miedema
LONDON, Aug 12 (Reuters) - Swiss bank Credit Suisse (CSGN.VX) announced around 75 job cuts at its British operations, becoming the second investment bank in as many days to slim down as economic fears hit the deal-making business.
"We are currently reducing headcount by approximately 75 in the United Kingdom in the investment bank and certain support functions," the bank said on Thursday.
British bank Barclays (BARC.L) will cut about 400 back-office jobs in its investment bank across the world, a person familiar with the matter told Reuters on Wednesday.
Financial market jitters in the wake of Europe's debt crisis have hurt income at trading desks, while client caution has depressed fee income from capital raisings.
This will result in job cuts across the industry in the next two months if there is no pick-up in the third quarter, bank industry sources have told Reuters. [ID:nLDE65L0U9]
Credit Suisse has strengthened its position during the credit crisis, which it escaped with far lower writedowns than rival investment banks such as Citigroup (C.N), Merrill Lynch (BAC.N) and JPMorgan Chase (JPM.N) [WRITEDOWN/].
The Swiss-headquartered bank -- which has a substantial wealth management unit -- said it continued to hire in areas such as fixed income flow sales, private banking relationship management and information technology.
It has gained market share and risen through to fourth position in equity capital markets league tables last year from eighth in 2007, before falling back to sixth position on low overall volumes so far this year.
In debt capital markets, it now ranks third, up from sixth in 2007, according to Thomson Reuters data.
Global investment bank income was down by an average of about a third in the second quarter from the first quarter, analysts have said, with falls across fixed income, currencies, equities and M&A advisory desks.
Volumes in Europe's equity capital markets -- where companies raise capital in public offerings and other types of equity sales -- have dropped by 40 percent so far this year compared with a year ago, Thomson Reuters data show.
In debt capital markets, the decline is 22 percent over the same period. The only rise is in mergers and acquisitions volumes, by 17 percent, the data show. (Reporting by Douwe Miedema; Editing by Jon Loades-Carter and Simon Jessop)
- Tweet this
- Share this
- Digg this