Credit Suisse, a Switzerland-based investment bank, announced the financial results for the fourth quarter and full-year of 2020. The bank posted a net loss of CHF 353 million in the last quarter of 2020. Net revenues reached CHF 5.2 billion, which is a drop of 16% compared to the same period in 2019.
According to the official announcement, the global investment banking business of Credit Suisse posted strong performance despite the overall decline in net revenues. The global investment banking division posted revenues of $10.2 billion in FY 2020, which was up 19% compared to 2019. Fixed income sales and trading, equity trading, capital markets & advisory posted strong gains in 2020.
Commenting on the recent financial results, Thomas Gottstein, Chief Executive Officer of Credit Suisse Group AG, said: “Despite a challenging environment for societies and economies in 2020, we saw strong underlying performance across Wealth Management and Investment Banking while addressing historic issues. We remained focused on serving our clients around the globe and on delivering value to our shareholders. The steady execution of the strategic initiatives we announced last July supports our growth agenda and allows for further investment in our businesses.”
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Investment Banking and Wealth Management
For FY2020, net revenues remained flat at CHF 22.4 billion. The total operating expenses were up 2% to CHF 17.8 billion. The wealth management-related businesses of Credit Suisse posted strong underlying performance in 2020 as transaction-based revenues jumped 8% compared to 2019. Furthermore, the bank reported RoTE of 6.6%. The firm is planning to accelerate its wealth management and investment banking growth this year.
“Looking forward into 2021 and beyond, we aim to further accelerate growth in Wealth Management and deliver sustainable returns in Investment Banking. We remain strongly committed to positioning Credit Suisse as a leader in sustainability and driving digitalization and automation to generate positive operating leverage. I would like to thank all our employees for their outstanding commitment and loyalty,” Gottstein mentioned in the official announcement.