Jobs go at Credit Suisse

The bank made a net loss of 950m Swiss francs (£440m; $700m) in the last three months of 2002, pushing into a full-year loss of 3.3bn francs.

But Credit Suisse still aims to return to profit as early as this year, and is cutting its dividend payout by 95%, and shedding up to 1,250 jobs, to stem outgoings.

The axe will fall the heaviest in its financial services division, which includes banking, wealth management and insurance operations.

Feeling the pain

Credit Suisse, Switzerland's number-two bank, has been among the worst performers in the stock market downturn.

More heavily exposed to the moribund investment banking sector than some of its rivals, it has seen its share price lose 55% in the past 12 months.

Aside from the natural effects of a slowing market, it has come under fire from investors for its seemingly muddled strategy, amid doubts over its ability to follow through on promises of sweeping cost cuts.

In turn, this has led to mounting speculation about the future for the bank, which is seen as not quite large enough to prosper alone in global financial markets.

Highs and lows

The key trouble spot is investment banking division, CSFB, one of the best-known names on Wall Street and beyond.

The parent company has had to set aside hundreds of millions of dollars to shore CSFB up against a tide of legal troubles, which range from allegations of biased research to unfair allocation of shares in hot flotations.

CSFB is also under investigation for its role in the financing of failed energy trader Enron.

Combined with the huge cost of employing CSFB's highly-paid staff, the unit's woes have led to rumours that it will be spun off - talk that Credit Suisse has always denied.

Insurance unit Winterthur by contrast, previously the problem area for the bank, returned to profit in the fourth quarter, after a cash injection and some drastic job cuts.

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