Credit Suisse Loss Narrows

Share

A 2.3 billion franc writedown triggered by U.S. tax reform kept the bank from its first year in the black since CEO Tidjane Thiam launched a turnaround plan in 2015. That helped the bank return an nearly unchanged pretax profit of 729 million francs (725 million in 2016). The bank posted a loss of 2.1 billion Swiss francs in its fourth quarter due to the writedown, better than the 2.6 billion franc loss reported this time previous year. "We were able to do that at the bank level as a whole".

Credit Suisse ascribed the rise to CEO Tidjane Thiam's three-year deep restructure of the bank.

The bank's capital position also improved in the last quarter of 2017.

Net revenue was stable compared to the prior year, primarily reflecting increased net revenue in International Wealth Management and the Corporate Center and a decrease in negative net revenues in the Strategic Resolution Unit, offset by lower net revenues in Global Markets and Swiss Universal Bank. "We generated profitable growth in 2017". Net revenues were up 15 percent at the markets business as the bank profited from brisker trading.

However, 2018 could be the turning point. "We should generate 4 to 5 billion (francs) of surplus in (2018) which can then be distributed".

Thiam and the executive board agreed to a 40 percent reduction to the bonuses originally proposed for them on 2016 earnings after investor groups voice their opposition. It said market volatility has had some benefits but has hurt its calendar, as clients "wait for calmer markets in order to transact".

Share