Losses narrow at Credit Suisse despite USA tax reforms

Chelsea West
February 15, 2018

The Zurich-based bank said net loss for the year narrowed to 983 million Swiss francs, from a far larger 2.71 billion francs in 2016.

In its results for 2017, Credit Suisse posted a reduced loss of 983m Swiss francs (£755m).

"If you look at the results we announced today and the key things in the results, we talked a lot about operating leverage i.e".

The authorities in question included the Department of Justice and the US Securities and Exchange Commission, the Swiss bank said, adding that it was "cooperating with the authorities".

Net revenues were stable compared to the prior year, primarily reflecting increased net revenues 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.

The bank made an annual return on regulatory capital of 3.9 percent.

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The bank said it will pay shareholders 0.25 francs per share for past year despite the loss.

Speaking to CNBC, Thiam said that it's "too early" to announce any share buybacks or higher dividends.

Credit Suisse ascribed the rise to CEO Tidjane Thiam's three-year deep restructure of the bank. On a pre-tax basis, it was the bank's first year in the black since Thiam launched the turnaround plan in 2015. "We should generate 4 to 5 billion (francs) of surplus in (2018) which can then be distributed".

The Swiss bank produced the notes, which were then sold by third parties to market makers, Mr. Thiam said.

Credit Suisse also provided a glimpse into its business already in 2018, pointing to revenue growth in the double digits in percentage terms in the first six weeks of the year.

Credit Suisse, which last week shuttered an obscure anti-volatility product after it incurred massive losses for clients, said trading had surged amid the market ructions in recent weeks.

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