The banking sector was hit by another round of job cuts yesterday as Credit Suisse, the investment bank, announced it was axing about 650 employees on the same day that HSBC said it was cutting 500.

Credit Suisse is trimming about 10 per cent of its UK workforce after credit writedowns led to two quarters of losses this year. Most of the job cuts are in its investment banking and support functions. Switzerland's second-biggest bank said that it was reacting to "market conditions and projected staffing levels required to meet client needs".