The controversial write-off of CHF 15 billion AT1 bonds resulted in a one-off profit.
However, the adjusted results showed a loss of CHF 1.3 billion.
Credit
Suisse has announced its Q1 2023 financial results, highlighting a pre-tax
income of CHF 12.8 billion ($14.1 billion) and a CET1 capital ratio of 20.3%.
The quarter was marked by growing challenges, primarily stemming from the
planned merger with UBS Group AG, which was revealed in March.
Credit Suisse Sees Significant
Asset Outflows
The bank's
performance during the quarter was significantly impacted by a CHF 15 billion
write-down in Additional Tier 1 (AT1) capital notes, ordered by the Swiss
Financial Market Supervisory Authority (FINMA) in light of the impending
merger.
Nonetheless,
the adjusted results reveal that the company's net revenue reached CHF 2.8
billion, representing a decline of 40% compared to the same period in 2022.
Additionally, the final adjusted pre-tax loss amounted to CHF 1.3 billion,
witnessing an increase of CHF 300 million compared to Q4 2022.
Credit
Suisse's problems resulted in substantial asset and deposit outflows, with
impacted assets under management (AuM) of CHF 1.3 billion. Deposit outflows
represented 57% of the quarter's Wealth Management and Swiss Bank net asset
outflows. It means that during the three-month period ending in March, it
experienced a net outflow of assets worth more than CHF 61 billion.
The
strongest outflow of assets was observed in Wealth Management, amounting to 9%
of the AuM reported in the previous quarter. Adjusted revenues for the division
decreased by 33% year-over-year, and its adjusted pre-tax loss was CHF 115
million.
Credit Suisse Cuts
Employment and Abandons Acquisition of the Klein Group
Despite the
turbulence surrounding the merger, "Credit Suisse is taking proactive
measures to protect its client franchise, manage risks and facilitate
operational stability," the company commented in the quarterly report. The
bank is making headway on cost transformation programs and risk reduction
initiatives following a review of its financial plans.
In the
Special Purpose Group (SPG), the bank has successfully reduced asset equivalent
exposures by approximately USD 48 billion since Q3 2022, amounting to more than
85% of the targeted reduction of USD 55 billion. This significant reduction has
positively impacted SPG and its related financing businesses.
Additionally, the
Non-Core Unit (NCU) has seen substantial reductions in Risk Weighted
Assets (RWA) and leverage exposure, with a decrease of approximately USD 4
billion and USD 14 billion, respectively, since Q4 2022. These reductions
demonstrate Credit Suisse's commitment to optimizing its balance sheet and
minimizing risk.
In terms of
cost actions, the bank has made notable progress on its cost transformation
program, with adjusted operating expenses in Q1 2023 dropping by 6%
year-over-year. This decrease is attributed to lower general and administrative
expenses and a reduction in compensation and benefits. Furthermore, Credit
Suisse has achieved a reduction of 9% in its workforce since Q3 2022, contributing to
its cost-saving efforts.
Credit
Suisse announced job cuts as early as January and continued with them in March.
The process accelerated this month when news of the UBS takeover emerged. The
bank has decided that a total of 36,000 jobs will need to be cut across both
units.
Lastly, in
light of the recently announced merger with UBS Group AG, Credit Suisse Group
AG and M. Klein & Co LLC have mutually agreed to terminate the acquisition
of The Klein Group, LLC (the investment banking business of M. Klein & Co.
LLC). The decision to acquire Klein was announced in February when Credit
Suisse reported CHF 7.3 billion annual loss.
Credit
Suisse has announced its Q1 2023 financial results, highlighting a pre-tax
income of CHF 12.8 billion ($14.1 billion) and a CET1 capital ratio of 20.3%.
The quarter was marked by growing challenges, primarily stemming from the
planned merger with UBS Group AG, which was revealed in March.
Credit Suisse Sees Significant
Asset Outflows
The bank's
performance during the quarter was significantly impacted by a CHF 15 billion
write-down in Additional Tier 1 (AT1) capital notes, ordered by the Swiss
Financial Market Supervisory Authority (FINMA) in light of the impending
merger.
Nonetheless,
the adjusted results reveal that the company's net revenue reached CHF 2.8
billion, representing a decline of 40% compared to the same period in 2022.
Additionally, the final adjusted pre-tax loss amounted to CHF 1.3 billion,
witnessing an increase of CHF 300 million compared to Q4 2022.
Credit
Suisse's problems resulted in substantial asset and deposit outflows, with
impacted assets under management (AuM) of CHF 1.3 billion. Deposit outflows
represented 57% of the quarter's Wealth Management and Swiss Bank net asset
outflows. It means that during the three-month period ending in March, it
experienced a net outflow of assets worth more than CHF 61 billion.
The
strongest outflow of assets was observed in Wealth Management, amounting to 9%
of the AuM reported in the previous quarter. Adjusted revenues for the division
decreased by 33% year-over-year, and its adjusted pre-tax loss was CHF 115
million.
Credit Suisse Cuts
Employment and Abandons Acquisition of the Klein Group
Despite the
turbulence surrounding the merger, "Credit Suisse is taking proactive
measures to protect its client franchise, manage risks and facilitate
operational stability," the company commented in the quarterly report. The
bank is making headway on cost transformation programs and risk reduction
initiatives following a review of its financial plans.
In the
Special Purpose Group (SPG), the bank has successfully reduced asset equivalent
exposures by approximately USD 48 billion since Q3 2022, amounting to more than
85% of the targeted reduction of USD 55 billion. This significant reduction has
positively impacted SPG and its related financing businesses.
Additionally, the
Non-Core Unit (NCU) has seen substantial reductions in Risk Weighted
Assets (RWA) and leverage exposure, with a decrease of approximately USD 4
billion and USD 14 billion, respectively, since Q4 2022. These reductions
demonstrate Credit Suisse's commitment to optimizing its balance sheet and
minimizing risk.
In terms of
cost actions, the bank has made notable progress on its cost transformation
program, with adjusted operating expenses in Q1 2023 dropping by 6%
year-over-year. This decrease is attributed to lower general and administrative
expenses and a reduction in compensation and benefits. Furthermore, Credit
Suisse has achieved a reduction of 9% in its workforce since Q3 2022, contributing to
its cost-saving efforts.
Credit
Suisse announced job cuts as early as January and continued with them in March.
The process accelerated this month when news of the UBS takeover emerged. The
bank has decided that a total of 36,000 jobs will need to be cut across both
units.
Lastly, in
light of the recently announced merger with UBS Group AG, Credit Suisse Group
AG and M. Klein & Co LLC have mutually agreed to terminate the acquisition
of The Klein Group, LLC (the investment banking business of M. Klein & Co.
LLC). The decision to acquire Klein was announced in February when Credit
Suisse reported CHF 7.3 billion annual loss.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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