Credit Suisse Slashes Bonus Accruals After Archegos Hit
- Bank set aside hundreds of millions less for compensation
- It could reverse the cuts if business recovers later this year
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Credit Suisse Group AG slashed the amount of money set aside for employee bonuses by hundreds of millions of dollars and used the savings to limit the financial hit from the implosion of Archegos Capital Management.
Cuts to accruals for staff compensation and other one-off items added about $600 million to underlying profit before tax for the first quarter, which is expected to be just over $3.7 billion, a person familiar with the matter said, asking for anonymity to discuss internal information.