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Credit Suisse trims 4Q loss, cites upside of United States tax reform

15 February, 2018, 07:02 | Author: Melinda Barton
  • Credit Suisse boss defends bank's role in collapsed trading product

Credit Suisse's 2017 loss came on the back of a 2.3 billion franc writedown triggered by USA tax reform.

It reported a net loss of 983 million Swiss francs ($1.05 billion) for the year and said that it paid 2.74 billion Swiss francs in income tax expenses, primarily related to the re-assessment of deferred taxes resulting from the USA tax changes.

The latest-quarter results included income tax expenses of 2.234 billion francs, mainly reflecting the re-assessment of deferred tax assets with an associated tax charge of 2.3 billion francs, primarily resulting from a reduction in the United States federal corporate tax rate following the enactment of the Tax Cuts and Jobs Act in the USA during the fourth-quarter of 2016.

Credit Suisse rose as much as 4.2 percent and traded 3.4 percent up at 1:38 p.m.in Zurich, leading the Bloomberg Europe 500 Banks and Financial Services Index higher.

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.


Credit Suisse's common equity Tier 1 capital ratio, assuming full implementation of Basel rules, was 12.8 percent at the end of December, down from 13.2 percent at the end of the third quarter.

Net revenue was CHF5.19 billion, compared to CHF5.18 billion in the prior year. Yet many of Credit Suisse's markets businesses went on to struggle throughout 2017 as volatility declined.

RBR, which past year reported a Credit Suisse stake worth around 100 million Swiss francs ($107 million), has been pushing for a breakup of the bank and said last month the group could create "enormous" value by replacing its IT platform and cutting jobs. "In the second full year of our restructuring plan, we remain focused on execution", Thiam added.

The logo of Swiss bank Credit Suisse is seen at a branch in Winterthur, Switzerland November 2, 2017.

The bank said it is adopting "a cautious short-term outlook in this period of heightened volatility".

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