Credit Suisse to cut Australian banker bonuses by up to 40pc

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The bank’s cost-cutting is more severe than Wall Street peers as Credit Suisse carves out its investment bank and absorbs losses from the Archegos and Greensill scandals.

Credit Suisse’s Australian bankers could see their bonuses reduced by as much as 35 to 40 per cent compared to a year ago as the bank nurses its way through a comprehensive restructuring,Wall Street’s biggest shops from the United States to Europe have prepared their bankers for layoffs and a steep reduction in bonuses in the coming months as dealmaking in MA and capital markets slows and banks look to reduce expenses after a busy two years of transacting.

Credit Suisse has cut thousands of jobs globally and is splitting its investment bank, which will trade under the Credit Suisse First Boston name.Credit Suisse’s bonus cuts, which will be announced in March, come as the bank looks to distance itself from scandals that caused billion-dollar losses, brought into question its risk management capabilities and led hundreds of staff to exit in the past year.

While its Australian bankers are braced for weakened compensation, their peers in bigger geographies such as the US and Asia-Pacific could see even lower bonuses. These regions suffered steeper drops in investment banking revenue compared to Australia last year, people familiar with the discussions in Australia and New York said.in fees last year, down 10 per cent on 2021, Refinitiv data showed.

Australia’s stronger performance, relative to global peers, has left some local bankers salty over the smaller bonus pool.

 

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