Daily Management Review

Credit Suisse suffered a loss for the third consecutive year


02/14/2018


Swiss bank Credit Suisse recorded an annual loss for the third consecutive year and reported write-offs in the fourth quarter of 2017 in connection with the tax reform in the US, CNBC reported.



Cayambe
Cayambe
The net loss of the bank in 2017 was 983 million Swiss francs ($ 1.05 billion).

Credit Suisse reported a tax expense of 2.74 billion francs related to the "revaluation of deferred payments as a result of the tax reform in the United States." Earlier, US President Donald Trump signed the law on tax reform after the document was approved in both chambers of the congress in December.

In general, the results of Credit Suisse were higher than market expectations. Analysts interviewed by Reuters forecast a net loss for the year of 1.1 billion Swiss francs.

The bank's loss in the fourth quarter was 2.1 billion Swiss francs due to write-offs, which is better than the loss of 2.6 billion francs for the same period in 2016.

Director General of Credit Suisse Tidjane Thiam noted that 2017 was the "decisive year" in the three-year plan for restructuring the bank.

He added that the bank managed to demonstrate profitable growth and that each division increased the profit on capital, while a special impulse was observed in the asset management business. This division recorded an increase in assets under management by 13% in annual terms.

Credit Suisse announced the payment of dividends of CHF 0.25 per share, compared to 0.70 francs in 2016. The dividends are slightly lower than the expected CHF 0.28 per share.

According to Thiam, it is too early for the bank to announce the redemption of its own shares or higher dividends.

"It's too early. We said our philosophy would be to generate significant surpluses and distribute 50% of them to shareholders either in the form of dividends or in the form of share repurchases," he told CNBC.

However, 2018 may be a turning point. "We need to generate 4 to 5 billion [francs] surplus [in 2018], which can then be distributed," - said the head of Credit Suisse.

Thiam noted that the bank's activities, depending on the markets, are subject to a number of uncertainties, including changes in interest rates around the world. The bank adheres to the "cautious short-term forecast" based on the recent volatility of the market.

"In the first six weeks of 2018, we saw a significant increase in market volatility, which, on the one hand, had a positive impact on our secondary operations, and on the other hand, negatively affected our main calendar, as customers are waiting for quieter markets to make transactions," he said.

Credit Suisse said that it did not face the significant consequences of falling ETN notes (notes are designed to reduce volatility, rate on VIX inversion).

source: cnbc.com






Science & Technology

Apple takes up to develop Apple Watch for health monitoring

Hyperloop is growing in Europe

Analysts: US gamers prefer mobile games

Google Assistant Winner Of Head-To-Head Test Of Digital Assistants, Beats Siri And Alexa

Animals Can Burn Muscle To Supplement Body Water Needs, Finds A Study

The future of private flights at Farnborough air show

Experts Want To Fix Problem Of AI Hurting People Of Color And The Poor

New Study Claims Astrobiologists Locating Possible Life On Moon In Its Life Time

Wreck Of Russian Ship Rumoured To Have 5,500 Boxes Of Gold Found Near South Korean Island

Gene Editing of Human Embryo Could Find ‘Moral’ Grounds: UK’s Ethics Council

World Politics

World & Politics

Venezuela comes up with a new monetary reform

Paris is losing its icon public bicycle sharing system

Heat wave in Europe creates problems for brewers

Is it legal to print a gun? US is discussing 3D printing of firearms

Southeast Asian Leaders To Seek Clarity Of US Policies For The Region Form Pompeo

The world economy is accumulating environmental debt

US To Invest $113 Million In Asia To Counter Chinese Influence

US Intelligence Detects New Activity At Its Missile ICBM Factory: Reports