Credit Suisse: deceptive Q1 profit
(CercleFinance.com) - Credit Suisse has reported pre-tax profit of 12.
8 billion Swiss francs for Q1 2023, mainly reflecting the zero writedown of an additional 15 billion Swiss francs of Tier 1 capital instruments (AT1).
This write-down was required by the Swiss Financial Market Supervisory Authority (FINMA) in light of the planned merger with UBS, which was announced on 19 March and remains subject to customary closing conditions.
In adjusted figures, the Swiss bank posted a pre-tax loss of 1.32 billion Swiss francs, compared with a profit of 300 million Swiss francs a year earlier, on net income that is down 40% to 2.73 billion Swiss francs, against a backdrop of significant net outflows on assets and deposits.
Credit Suisse warns that these will probably result in a substantial loss in wealth management in Q2, but it also expects a substantial pre-tax loss in investment banking and at the group level.
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