Banca Credit Suisse.
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LONDON – Credit Suisse recorded a better loss than expected in the fourth quarter of 2020, based on higher provisions for legal litigation.
The Swiss bank reported a net loss of 353 million Swiss francs ($ 392.8 million) on Thursday for the fourth quarter of 2020. It was better than market expectations. According to Refinitiv, analysts had forecast a net loss of 558.5 million Swiss francs for that quarter and a net income of 2.8 billion Swiss francs for that year. Credit Suisse ended 2020 with a net income of 2.7 billion Swiss francs.
The Swiss bank announced to markets in January that it would fall at a higher loss than expected in the last quarter of 2020, after setting aside $ 850 million for a legal dispute over real estate debt in the United States. Credit Suisse then accepted a $ 600 million settlement last week.
Thomas Gottstein, CEO of Credit Suisse, said in a statement: “Despite a difficult environment for companies and economies in 2020, we have seen strong underlying performance in wealth management and investment banking, while addressing historical issues. . ”
Other attractions for the quarter:
- The CET 1 ratio, a measure of the bank’s solvency, reached 12.9% compared to 12.7% a year ago.
- Revenues amounted to 5.2 billion Swiss francs, up from 6.2 billion Swiss francs a year ago.
- Total operating expenses amounted to 5.2 billion Swiss francs, compared to 4.8 billion at the end of 2019.
The bank’s wealth management division recorded revenues down 24% from the previous year in the fourth quarter. Global Investment Banking, on the other hand, reported a 19% annual increase in revenue.
Pandemic attention
In January, Credit Suisse also announced that it would start buying between 1 billion and 1.5 billion Swiss francs from its own shares from 12 January. The bank has now added that it will pay a dividend of 0.2926 Swiss francs per share in relation to the 2020 Results.
In the future, Credit Suisse seemed cautious behind the pandemic. “We warn that the COVID-19 pandemic has not yet been behind us and, despite continued fiscal and monetary stimulus, the pace of recovery remains uncertain,” the creditor said in a statement.
The share price has risen by about 12% since the beginning of the year.