Swiss bank Credit Suisse Group AG, in January-March 2016, recorded a second consecutive quarterly loss as a result of significant write-downs of assets. At the same time, the Dutch bank ING Groep NV reported a drop in net profit in the first quarter.
The net loss of Credit Suisse in the first quarter amounted 302 million Swiss francs ($ 273.14 million) compared with a net profit of 1.05 billion francs a year earlier.
The Wall Street analysts on average had expected a loss at the level of 195 million francs.
The revenue of the bank fell 30.2% to 4.64 billion francs against 6.65 billion francs a year earlier. The experts expected a decrease in revenue to 5.27 billion francs.
The write-offs of assets, mainly related to non-performing loans, amounted to $ 633 million in the fourth quarter of 2015 and approximately $ 450 million in January-March.
Chief Executive Officer of Credit Suisse Tidjane Thiam carries out a massive restructuring aimed at reducing the investment units and a significant reduction in costs.
In March, the bank announced plans to lay off 2000 employees engaged in the investment business. Already in the first quarter, Credit Suisse provided a cost reduction of approximately $ 700 million per year, that is, half the target for the whole of the current year.
"In the first quarter of 2016 and especially in January and February, the situation in the market has been one of the most difficult in the history considering the dramatic decrease in the volume of transactions and customer activity," - said Tidjane Thiam. "We continue to adhere to our target, which is to reduce the costs of investment and capital management", - he added.
The cost of Credit Suisse shares since the beginning of 2016 decreased by 38%; the bank's capitalization is estimated at 26.3 billion francs.
The Dutch bank ING Groep NV reported a drop in net profit in the first quarter due to increased costs of compliance with regulatory requirements and reduced income for the Financial Markets Division.
ING's net profit in January-March fell 29% to € 1.26 billion from € 1.77 billion a year earlier.
Basic earnings before tax amounted to € 1.19 billion from € 1.66 billion a year earlier.
The results were slightly worse than analysts' expectations.