ZURICH – Credit Suisse is looking for ways to accelerate cost cuts announced just weeks ago as client outflows and a slowdown in activity weigh on its revenue outlook, three people with knowledge of the talks said.

The cost savings are likely to involve more job cuts than previously announced for the first wave of reductions, including in its mainstay wealth business, said the sources.

Credit Suisse is cutting about 5 per cent of its private banking headcount in the Asian financial hub of Hong Kong, two of the sources said, targeting mainly mid- and junior-level bankers, in cuts that go deeper than reductions outlined before.

The Swiss bank’s other wealth hub in Asia is in Singapore.

Credit Suisse declined to comment on job cuts in the Hong Kong private banking business.

The bank said in October it intended to reduce its cost base by around 2.5 billion Swiss francs (S$3.6 billion) to about 14.5 billion Swiss francs in 2025.

“As previously outlined, the bank is already making strides with these cost reduction activities, following a clear execution road map,” the bank told Reuters on Thursday.

It had said it would eliminate 2,700 jobs starting in the fourth quarter as it scaled back its scandal-hit investment bank to increase its focus on wealth and asset management.

However, the bank has seen clients pull 6 per cent of assets under management in the six weeks to Nov 11, a drain that has led to the liquidity at some of its entities dropping below regulatory requirements. The outflows also hit revenue.

Client outflows have partially reversed and very few clients have left entirely, Credit Suisse chairman Axel Lehmann told a Financial Times conference on Thursday.

Credit Suisse shares fell to a new low on Thursday, nearing the offer price of the 2.24 billion Swiss franc rights issue needed to help stabilise its finances.

The fresh round of private banking cuts signals challenges facing Credit Suisse as it shifts towards banking for the wealthy, after vowing to ramp up wealth management globally.

Two sources said the cuts in the Hong Kong private banking team mainly involved those associated with the China wealth management business.

In all, it planned to cut 9,000 jobs of the 52,000 it had at the time, the bank said in October. REUTERS