HomeInvestmentCredit score Suisse Q3 2021 income

Credit score Suisse Q3 2021 income

The Credit score Suisse emblem on the window of the Credit score Suisse Group AG financial institution department in Zurich, Switzerland, Thursday, April 8, 2021.

Stephen Vermouth | Bloomberg | Getty Photographs

Credit score Suisse beat analysts’ estimates for the third quarter however was hit by allegations of settling corruption prices in Mozambique and different authorized points.

The Swiss financial institution additionally mentioned it expects to report a internet loss within the final quarter of 2021 and mentioned it plans to chop again on its funding banking operations.

Credit score Suisse mentioned Thursday that internet revenue attributable to shareholders was 434 million Swiss francs ($ 476 million) for the third quarter, up from analysts’ estimates of 333.8 million Swiss francs, in line with Refinitiv. Nevertheless, the outcomes for the third quarter have been down greater than 20% from a yr earlier.

The financial institution mentioned its income was boosted by “massive authorized charges” of CHF 564 million, together with CHF 214 million associated to its settlement within the “Mozambique case” and “litigation provisions in reference to sure different inherited questions. ” A Swiss financial institution has been fined by international regulators following a corruption scandal involving Mozambique’s tuna fishing.

Credit score Suisse additionally mentioned income rose to CHF 5.4 billion within the third quarter from CHF 5.2 billion a yr in the past, and its CET 1, a measure of the financial institution’s solvency, was 14.4%, up from 13% a yr earlier. … …

Downsizing funding banking

Credit score Suisse additionally introduced numerous modifications to its organizational construction.

From January, the financial institution will reduce its funding banking enterprise, leaving most of its core companies enterprise. As such, he expects inventory gross sales and buying and selling revenues to fall within the coming months. This got here after a collection of scandals involving the unit, together with its relationship with the collapsed hedge fund Archegos.

“Our targets are clear: we wish to be a stronger, extra customer-centric financial institution that places threat administration on the very core of its DNA to ship sustainable development for traders, clients and colleagues,” – Thomas Gottstein, CEO of Credit score Suisse, says message.

The financial institution mentioned that from January will probably be break up into 4 divisions (wealth administration, funding financial institution, Swiss financial institution and asset administration) in 4 places (Switzerland, Europe, the Center East and Africa, Asia Pacific and the Americas).

He introduced an elevated concentrate on his asset administration division. The division’s internet revenues rose 3% to CHF 3.3 billion within the third quarter, whereas property below administration rose 9% to CHF 843 billion.

“Wealth administration companies have constantly returned to stable internet new property and better working revenue, whereas recurring commissions and charges and buyer transaction volumes confirmed sturdy year-over-year development,” the financial institution mentioned in a press release Thursday.

Credit score Suisse’s funding banking division elevated its income by 10% to CHF 2.5 billion.

Maria Rivas, Senior Vice President of DBRS Morningstar, mentioned by way of e-mail: “We consider strategic initiatives are crucial to revive investor confidence within the Credit score Suisse franchise to strengthen the Group’s wealth and asset administration enterprise, the place the Group sees vital development alternatives. and cut back the danger on the Funding Financial institution after the Archegos affair. “


Wanting forward, the financial institution mentioned it expects market volumes to say no within the coming weeks as buying and selling stabilizes following volatility brought on by the coronavirus pandemic.

“General, we count on additional market quantity contraction by the top of 2021 because the buying and selling surroundings normalizes from the elevated ranges seen in 2020, particularly as central banks begin signaling the top of the financial help offered through the COVID-19 disaster.” – the message says.

The Federal Reserve mentioned Wednesday that it’ll quickly start to decelerate its month-to-month bond purchases because it hopes to reduce its huge stimulus program.

The financial institution mentioned it will report an impairment lack of CHF 1.6 billion within the fourth quarter of this yr in reference to the 2000 acquisition of the funding firm Donaldson, Lufkin & Jenrette.

The Swiss financial institution traded unchanged within the early hours of European buying and selling.

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