European bank giants post record losses

Two of Europe's biggest financial services companies, Credit Suisse and Allianz, yesterday posted record quarterly losses as tough economic conditions took their toll.

Zurich-based Credit Suisse unveiled a loss of 2.1bn Swiss francs (£913m) in the third quarter mainly due to heavy losses at its Winterthur insurance arm and a delayed recovery at Credit Suisse First Boston.

By way of response, the company announced the appointment of Leonhard Fischer, the former head of investment bank Dresdner Kleinwort Wasserstein, as Winterthur's new chief executive to turn it around.

Credit Suisse also pledged yesterday to cut costs by another $500m (£316m) at its investment banking arm CSFB, which reported a $425m loss in the third quarter of the year. Winterthur made a loss of Sfr1.4bn.

Munich-based Allianz, meanwhile, blamed its third-quarter loss of €2.5bn (£1.6bn) on weak capital markets, asbestos-related claims in the US, losses at its Dresdner Bank subsidiary and investment writedowns. Dresdner had a loss of €972m in the quarter, hurt by ongoing loan-loss provisions, reigniting speculation about its future.