Credit Suisse trims Dubai investment banking, ships jobs to Qatar
By Mirna Sleiman
DUBAI (Reuters) - Credit Suisse CSGN.VX is trimming its investment banking team in Dubai and relocating some jobs to neighboring Qatar, three sources said, as part of efforts to cut costs and focus on richer markets.
Switzerland's second-biggest bank will consolidate its back-office investment banking team into the tiny oil-rich Gulf state, home to one of the world's largest sovereign wealth funds, the sources said speaking on condition of anonymity because the matter is not yet public.
Credit Suisse is in the middle of a program to cut costs by the end of 2013 to adapt to a drastic slowdown in investment banking revenues and lower profitability in the sector.
Qatar owns a 6.2 percent stake in the Swiss lender and is the top shareholder in the bank followed by Saudi Arabia's Olayan Group. Both Gulf entities took part in Credit Suisse's 2012 capital raising efforts.
"At least two senior bankers in Dubai were asked to leave and around five back office staff from the investment banking department are relocating to Qatar," one person familiar with the matter told Reuters.
The bank declined to comment on specific job cuts in an emailed statement sent to Reuters but said it was being proactive in balancing its business relative to opportunities and market conditions.
"This involves realigning resources to growth areas and adjusting capacity to meet client needs and to manage costs across our businesses," the bank said.
"Qatar is a key market for Credit Suisse and we are redeploying resources according to our business needs." Continued...