* Says plans to focus resources on more profitable areas
* Sees roughly $75 million in savings from the move
* Joins other major banks in retreat from commodities
(Adds bullets comment from CEO, CFO, detail)
ZURICH, July 22 Credit Suisse said on
Tuesday it was winding down its commodities trading to focus its
resources on more profitable areas of its business.
In presentation slides accompanying the bank's
second-quarter earnings, Credit Suisse said it expected to
achieve roughly $75 million in savings from the move and reduce
risk-weighted assets by $2 billion.
"We've really for the last close to a year now been actually
reducing our capital in (the macro) business as well as our
expenses," Chief Executive Brady Dougan said in a video
interview accompanying Credit Suisse's earnings release.
"We have now taken additional steps during the course of the
second quarter to actually have made a decision to exit the
The bank's Chief Financial Officer David Mathers told
reporters in a call following the earnings that Credit Suisse
was a relatively small house in commodities with quite a lot of
fixed costs against it, and it was therefore appropriate to exit
the business. He did not comment on how many employees would be
affected by the move.
Credit Suisse joins the likes of Deutsche Bank,
JPMorgan and Barclays that are either exiting
or significantly downsizing their activities in commodities.
In its second-quarter results, Credit Suisse reported its
biggest quarterly loss since the collapse of Lehman Brothers in
2008, due to a 1.6 billion Swiss franc ($1.78 billion) charge
taken following a May settlement with U.S. authorities over tax
($1 = 0.8980 Swiss Francs)
(Reporting by Joshua Franklin and Katharina Bart; Editing by