Credit Suisse Scales Back Investment Banking As Earnings Beat Estimates

  • Posted on November 04, 2021
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  • By FC Team
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Credit Suisse has beaten analyst estimates for the third quarter, but took a hit from charges settling allegations of corruption in Mozambique and other legal issues.The Swiss bank also revealed that it expects to report a net loss in the final quarter of 2021 and said it plans to scale back its investment banking operations.Credit Suisse said Thursday that net income attributable to shareholders came in at 434 million Swiss francs ($476 million) for the third quarter, above analyst estimates of 333.8 million Swiss francs according to data from Refinitiv. However, the third-quarter results were down over 20% from a year earlier.The bank said gains in its income was hit by “major litigation charges” of 564 million Swiss francs, including 214 million Swiss francs relating to its settlement over the “Mozambique matter” and “litigation provisions in connection with certain other legacy matters.” The Swiss bank has been fined by global regulators following a corruption scandal involving Mozambique’s tuna fishing industry.Credit Suisse also reported that revenue rose to 5.4 billion Swiss francs in the third quarter, from 5.2 billion Swiss francs a year ago, and that its CET 1 ratio, a measure of bank solvency, was 14.4%, up from 13% a year earlier.cnbc.com

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