Credit Suisse Bank.
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LONDON – Credit Suisse posted a better-than-expected loss in the fourth quarter of 2020, due to higher provisions for legal disputes.
The Swiss bank on Thursday reported a net loss of 353 million Swiss francs ($ 392.8 million) in the fourth quarter of 2020. This was better than market expectations. According to Refinitiv, analysts had forecast a net loss of 558.5 million Swiss francs in the quarter and a net profit of 2.8 billion Swiss francs in the year. Credit Suisse ended 2020 with a net income of 2.7 billion Swiss francs.
The Swiss bank notified the markets in January that it would be sinking to a greater-than-expected loss 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 agreed to a $ 600 million deal last week.
Thomas Gottstein, CEO of Credit Suisse, said in a statement: “Despite a challenging environment for societies and economies in 2020, we have seen strong underlying performance in Wealth Management and Investment Banking, while addressing historical issues.”
Other highlights of the quarter:
- The CET 1 index, a measure of bank solvency, reached 12.9%, compared to 12.7% a year ago.
- Revenues stood at 5.2 billion Swiss francs, compared to 6.2 billion Swiss francs a year ago.
- Total operating expenses were 5.2 billion Swiss francs, against 4.8 billion at the end of 2019.
The bank’s wealth management division recorded a 24% year-on-year decline in revenue in the fourth quarter. Global Investment Banking, on the other hand, recorded a 19% increase in revenues compared to the previous year.
Pandemic care
In January, Credit Suisse also announced that it would start buying between 1 billion and 1.5 billion Swiss francs of its own shares from 12 January. The bank has now added that it will pay a dividend of CHF 0.2926 per share in relation to its 2020 Results.
Going forward, Credit Suisse seemed cautious due to the pandemic. “We warn that the COVID-19 pandemic is not yet behind us and, despite continued fiscal and monetary stimulus, the pace of recovery remains uncertain,” said the creditor in a statement.
The stock price has risen about 12% since the beginning of the year.