Credit Suisse will exit the fixed-income commodities trading business.
The announcement was made in the company’s third-quarter earnings statement Tuesday in which the Zurich-based firm reported a pre-tax loss of $779 million, reflecting its $2.6 billion settlement of U.S. tax evasion charges announced May 20.
The exit from the investment bank’s fixed-income commodities trading, which the company said would save $75 million in expenses, is part of the firm’s restructuring of its global macro business which will save a total of $200 million.
Credit Suisse’s asset management commodities group is not affected by the change, said Drew Benson, spokesman.
Credit Suisse’s move follows a report in May from consulting firm Coalition that showed trading revenue generated from fixed income, currencies and commodities at the 10 largest global investment banks fell 15.7% year-over-year in the first quarter. There was $22 billion in revenue generated during the quarter, down from $26.1 billion a year earlier. Criterion cited stricter regulatory requirements and “subdued client activity” as the driving forces behind the weakness.