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Tidjane Thiam says Credit Suisse has a long way to go on its cost-cutting journey

But underlying pre-tax profits at both were down from their levels three months earlier and a year ago.

Credit Suisse, whose chief executive Tidjane Thiam in March accelerated a restructuring programme at the bank, on November 3 published third-quarter results showing that staff cuts now totalled 5,400 for the year.

The bank said it is on track to beat its year-end cost savings target, although Thiam said the restructured bank had “a long way to go in our journey”.

It said it has just 600 of the targeted 6,000 job cuts left to go before the end of 2016.

At the bank’s global markets – or sales and trading – unit, which posted a loss in the first quarter amid the restructuring, profits were forthcoming thanks to a strong quarter for credit. But, at Sfr146 million, they were less than half of the Sfr390 million earned in the third quarter of 2015 and down roughly a quarter from their Q2 level.

Revenues dipped from just less than Sfr1.6 billion a year ago to around Sfr1.4 billion, while adjusted costs were slightly higher at Sfr1.2 billion.

At the investment banking and capital markets unit, a 17% year-on-year rise in revenues thanks to debt and equity capital markets “outperformance” saw the division earn Sfr467 million in revenues.

However, a 30% rise in costs year-on-year outstripped that and trimmed profits for the quarter to Sfr54 million, compared with Sfr65 million a year ago and less than half of the Sfr127 million in the second quarter of 2016.

In a memo sent to investment banking and capital markets staff and seen by FN, divisional chief executive Jim Amine described the unit as having demonstrated “steady progress against our strategy” during the third quarter, emphasising “the strength and connectivity of our global franchise”.

Amine added: “Looking ahead, our goal is to finish 2016 strong. We achieved what we did this quarter by staying close to our clients, and we must continue to do so.”

UPDATE: This article has been updated to include comments from Jim Amine’s memo to staff in Credit Suisse’s investment banking and capital markets unit

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