So Credit Suisse on Thursday confirmed that it outdid arch rival UBS in riding out the summer credit turbulence.
UBS, of course, had a shocker – so the champagne can stay on ice. Credit Suisse’s net profit fell 11 per cent in the third corner, while the investment bank squeaked into the black with pre-tax profit of SFr6m, versus SFr758m in the same period last year.
Now that the big three European cap markets banks have reported, all bruised from the credit squeeze, all clamping down accruals towards that year-end bonus pot, it’s time to check out who did what in the IB pay slashers league.
Credit Suisse – a serious squeeze
- comp/revenue ratio drops to 40%, from 53.5% last year
- compensation and benefits falls to SFr839m; down 78% on last quarter and 63% on last year
- IB staff up 5% on Q2; 9% on the year
Deutsche Bank – savage
- comp/revenue down to 9%, from 34% a year ago
- compensation and benefits fall to €177m; down 92% on Q2 and 87% year on year
- employees up 3% on the quarter; 24% on the year
UBS – surely more pain to come
- no comp/revenue ratios – thanks to “net revenues of negative SFr4.2bn”
- personnel expenses fell to SFr1.2bn; down 63% on Q2 and 49% year on year
- personnel rose 2% from Q2 to Q3; 11% year on year