RESEARCH TRIANGLE PARK – Credit Suisse on Thursday reported a pre-tax loss of some $1.4 billion in the fourth quarter of last year, as its new managers vie to right the top-drawer Swiss bank that has faced a string of setbacks in recent years.

In an interview with CNBC, CEO Ulrich Koerner called the company’s financial report results “completely unacceptable.”

Looking ahead, Koerner added in a statement: “We have a clear plan to create a new Credit Suisse and intend to continue to deliver on our three-year strategic transformation by reshaping our portfolio, reallocating capital, right-sizing our cost base, and building on our leading franchises.”

Credit Suisse has a large operation in Morrisville and continues to hire despite the bank’s financial troubles. It has more than 40 open positions in Morrisville, according to the latest WRAL TechWire Jobs Report. 

The financial services firm opened a new $100 million building at its RTP campus in 2019 as part of a 1,200 jobs in RTP announced in 2017. But that expansion only moved ahead after  North Carolina General Assembly passed a bill repealing House Bill 2 known as the “bathroom bill. It has had a presence in North Carolina since 2005.

The bank also announced the $175 million purchase of the investment banking business of U.S.-based M. Klein & Co. and plans to roll those operations into the revived CS First Boston investment bank.

Credit Suisse isn’t ‘on the brink,’ says Bloomberg analysis

The Zurich-based company, Switzerland’s No. 2 bank after UBS, said net revenue sank 20% compared with a year ago, coming in at 3 billion francs for the fourth quarter. The pre-tax loss was nearly 1.32 billion francs, compared with 1.67 billion in the same period a year earlier.

Credit Suisse saw its investment bank business shrink and its Swiss bank and wealth management operations increase as a share of revenue. The company says it expects losses in both the investment bank and wealth management units for the first quarter of this year, partly due to a drop in assets under management and lower deposits since announcing a broad restructuring in October.

The bank’s performance last year overall “was mainly driven by significantly lower” investment banking revenue, pointing to an “industry-wide slowdown in capital markets” with major indices all falling in 2022, it said in a statement.

In October, Credit Suisse unveiled a “radical strategy” to revamp itself through measures including cost cuts, staff reductions, steps to lower risk and a cash infusion through a share purchase from the Saudi National Bank.

Credit Suisse has run into multiple troubles in recent years, including bad bets on hedge funds and a spying scandal involving UBS. A Swiss court fined the bank more than $2 million in September for failing to prevent money laundering linked to a Bulgarian criminal gang more than 15 years ago.

For the year, revenue plunged 34% to 14.92 billion francs, and the pre-tax loss came in at 3.26 billion francs, compared with a pre-tax loss of 600 million francs in 2021.