Credit Suisse Said to Cut Dubai Jobs After Deutsche, Nomura
Credit Suisse Group AG (CSGN), the second- biggest Swiss bank, cut two Dubai investment banking jobs and is moving others to Qatar as part of cost-reduction plans announced last year, two people with knowledge of the matter said.
The lender will move five junior analysts to the Qatari capital Doha from its regional headquarters in Dubai, the people said, asking not to be identified because the information is private. Qatar’s sovereign wealth fund holds a 5.54 percent stake in Credit Suisse. Reuters reported the changes yesterday.
Credit Suisse joins other global lenders announcing job cuts this month as deal flow slows and banks reduce costs. Deutsche Bank AG, Germany’s biggest lender, eliminated seven jobs at its investment bank unit in Dubai, two people with knowledge of the situation said, while Nomura Holdings Inc. cut four of 12 similar positions, two people familiar said.
Credit Suisse is “realigning resources to growth areas and adjusting capacity to meet client needs and to manage costs across our businesses,” it said in an e-mailed response to questions. “Qatar is a key market for Credit Suisse, and we are redeploying resources according to our business needs.”
The bank reduced its fixed-income positions by 18 percent in the year through June, Chief Financial Officer David Mathers said Sept. 12. The bank announced 3,500 job cuts last year.
“The United Arab Emirates remains an important market and hub for our business in the region,” Credit Suisse said in yesterday’s statement. It declined to comment on specific cuts.
Credit Suisse reported a 2.6 percent rise in second-quarter profit to 788 million francs ($843 million) on July 18.
The bank will continue to look for opportunities to reduce costs across the group to adjust to the market environment, Mathers said in the presentation. These reductions would come on top of the previously announced 3 billion-franc cost savings program, Mathers said in the presentation at the Barclays Global Financial Services Conference in New York.
Credit Suisse has advised Qatar Investment Authority on several deals including the purchase of London retailer Harrods Ltd. In February, Qatar Investment Authority bought Credit Suisse’s London headquarters and leased it back to the bank.
Qatar Holding is the world’s 12th-largest sovereign wealth fund, according to the Las Vegas-based SWF Institute, well behind such funds as Abu Dhabi’s $627 billion Investment Authority. Its riches come from the world’s fourth-largest gas reserves, which provide for a population of less than 2 million.
The country’s high-profile deals this year have occurred across a range of industries. In August it agreed to spend $1.45 billion for a 20 percent stake in BAA Ltd., the owner of London’s Heathrow airport. It also acquired a 3 percent stake in Total, now worth about $3.7 billion, and shares in Royal Dutch Shell Plc.
Credit Suisse declined 2.5 percent to 21.07 francs as of 1:35 p.m. in Zurich.
To contact the reporter on this story: Arif Sharif in Dubai at firstname.lastname@example.org