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Credit Suisse Result Q2 19



In the second quarter of this year, Credit Suisse posted net income of $ 937 million ($ 945 million), outperforming analysts' expectations.

Analysts surveyed by Reuters anticipate net income of 720.3 million francs ($ 726.13 million) for the second quarter of 2019.

The Swiss bank posted net income of CHF 647 million in the same period last year ,

Here are some key highlights of the quarter: [19659006] Pretax income reached CHF 1.3 billion compared to CHF 1.1 billion a year earlier.

  • The return on equity amounted to 9.7% compared to 6.9% in the previous year.
  • The CET1
    ratio reached 12.5% ​​compared to 12.8% in the previous year
  • The Swiss lender surprised analysts on Wednesday with a return on tangible equity (RED), which was almost 10% above expectations. RED measures the bank's ability to handle potential losses. The higher the RED, the more solid the bank is rated.

    This number reached the bank for the first time since the restructuring offensive launched in the fourth quarter of 2015.

    The logo of the Swiss banking giant Credit Suisse will be on view on October 17, 2017 in Zurich.

    Fabrice Coffrini | AFP | Getty Images

    Speaking to Carolin Roth of CNBC, Thiam said, "We also believe that we can accomplish much more on this point (RED) … and that depends in particular on asset management growth."

    The international bank The asset management grew over the previous year. Net income was 444 million Swiss francs in the second quarter of 2019 compared to 433 million Swiss francs last year.

    Wealth Management delivered robust results in the second quarter, with stronger capital appreciation after the slowdown, according to Credit Suisse. "

    " No fan of low interest rates "

    At the end of last quarter, Credit Suisse CEO Tidjane Thiam said The Swiss lender cited geopolitical and macroeconomic uncertainty as a potential risk to client activity.

    However, in its most recent report, Credit Suisse stated that this was a cloud of uncertainty over the bank's performance this year US trade talks and cautious comments from central banks, both the European Central Bank (ECB) and the US Federal Reserve have signaled that further impetus is needed to boost their spending to stimulate the respective economies.

    Market expectations indicate a A US interest rate cut on Wednesday as the Federal Reserve announces its recent policy decisions. There is also a market consensus that the ECB will lower key interest rates at its next meeting in mid-September. Both central banks have recently attempted to reduce their stimulus since the sovereign debt crisis, but economic data is still showing weaknesses.

    Thiam told CNBC, "I'm not a big fan of low interest rates like a big belief in the importance of savings on the economy." Debt subsidies and saver penalties hurt the economy in the long term. "

    Low interest rates stimulate borrowing.

    Uncertainty in sight

    In the run-up to the third quarter's results, Credit Suisse stated that customer engagement to date has been at a "healthy level". However, it remains to be seen "whether this leads to activities".

    "We also need to stress that we expect the usual seasonal slowdown," the bank said in a statement on third-quarter performance due to the holiday season.

    At the beginning of 2019, Credit Suisse launched a share buyback program with the aim of buying one billion Swiss francs by the end of 2019.

    Credit Suisse shares have fallen more than 25% over a 12-month period.


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