Credit Suisse has strong start to 2018 after third straight loss

Randall Padilla
February 15, 2018

Credit Suisse said Wednesday that it narrowed its fourth-quarter loss and predicted a positive impact from the USA tax reform in the future after an initial financial hit. Credit Suisse shut down the product because there is no prospect of price recovery and will compensate investors on February 21.

"2017 was a crucial year of delivery in our three-year restructuring plan, after 2016, which was a year of deep and radical reorganisation", chief executive Tidjane Thiam was quoted as saying in a company statement. Its stock rose 3% on Wednesday and has outperformed its crosstown. "This year should be the first year where that (surplus) number is actually meaningful", Thiam said.

While the market swings of the past week have unnerved investors, they're generally good news for investment banks because clients transact more.

Revenue is Asia's markets unit - trading - surged 15 percent in the first six weeks of this year, while income in its overall markets arm climbed by 10 percent, the bank said. Laurent Mignon, the CEO of France's Natixis SA, said in an interview Wednesday that his bank has seen "good activity" since the start of the year.

Net revenue was CHF5.19 billion, compared to CHF5.18 billion in the prior year.

Analysts and investors will look for evidence in the financial report of Credit Suisse that the restructuring plan continues to drive revenue growth, lower costs and improved risk management in the commercial departments. He said the product had not had a material impact on the firm's finances. Yet many of Credit Suisse's markets businesses went on to struggle throughout 2017 as volatility declined.

The bank said the Asia Pacific region delivered its best quarterly results to date with adjusted pre-tax income of 239 million Swiss francs, driven by net revenues of 626 million Swiss francs.

Thiam was positive about business in the first few weeks of 2018.

Other reports by AllAboutTopnews

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