Credit Suisse shares drop 18% as bank discloses 3rd-Quarter loss.
By The Exchange Team
Credit Suisse shares fell 18% on Thursday after the Swiss bank reported a quarterly deficit and a strategic makeover.
The troubled lender announced a third-quarter net loss of $4.09 billion, compared to analyst projections of $567.93 million.
The figure was also much lower than the 434 million Swiss franc profit generated in the same period previous year.
The bank said the loss was due to a 3.655 billion Swiss franc impairment after a "full strategic analysis"
Under investor pressure, the bank announced a comprehensive business reform to address investment bank underperformance.
On Thursday, new CEO Ulrich Koerner told CNBC that it was the start of a "transformation into a new Credit Suisse."
In its anticipated strategic shift, the bank promised to "radically restructure" its investment bank to reduce risk-weighted assets.