(Bloomberg) -- Credit Suisse Group AG Chief Executive Officer Tidjane Thiam said the bulk of the bank’s job cuts are behind it and the firm sees a strong year ahead for equities and fixed income.
More cost cuts are coming in the global-markets division in 2017, “but it’s not that material,” Thiam said in an interview with Bloomberg Television’s Francine Lacqua at the World Economic Forum in Davos, Switzerland. “We are continuing the efficiency program across the bank. We should increase productivity 2 or 3 percent per annum. In 2018, you see the improvements coming through.”
“The expectation is that fixed income is going to do well,” he said. “With equities we have a good franchise. It is doing well.” It “should be a reasonable year” for compensation given these trends, he said.
Thiam also said that the Credit Suisse is exploring cost-sharing programs with other banks, without elaborating. An initial public offering for the Swiss division is still on track for the second half of the year, he said.
Thiam, 54, last year cut 6,000 jobs across the bank after volatile markets prompted the company to write down the value of risky securities and the firm shifted its focus to wealth management. As Credit Suisse sought to build its equities business while shrinking the debt unit, the bank posted some of the weakest results from stock trading among rivals in the third quarter.
In September, Thiam replaced global markets chief Tim O’Hara, who had previously run equities, with Brian Chin, a veteran in Credit Suisse’s securitized products business in New York. Last month, the bank hired UBS Group AG’s Mike Stewart as head of equities, reporting to Chin.
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