Credit Suisse has just posted its financial results for the first quarter of 2021. The company reported net loss of CHF 252 million in Q1 2021. The numbers reflected a significant charge in relation to the US-based hedge fund matter.
The company reported a pre-tax loss of CHF 757 million in the first quarter of 2021 and a pre-tax charge of CHF 4.4 bn relating to the US-based hedge fund matter. Credit Suisse noted that the results have been strong with net revenues excluding significant items and US-based hedge fund matter reaching CHF 7.4 billion. The number marks a 35% year-on-year increase.
The bank reported higher adjusted pre-tax income of CHF 3.6 billion, jumping 280%. At close of business on 21 April 2021 the company has exited 97% of the related positions and expect to take an additional loss of CFH 0.6 billion in relation to the US-based hedge fund matter.
Thomas Gottstein, Chief Executive Officer of Credit Suisse Group AG, commented:
Our results for the first quarter of 2021 have been significantly impacted by a CHF 4.4 billion charge related to a US-based hedge fund. The loss we report this quarter, because of this matter, is unacceptable. Together with the Board of Directors, we have taken significant steps to address this situation as well as the supply chain finance funds matter. Among other decisive actions, we have made changes in our senior business and control functions; we have enhanced our risk review across the bank; we have launched independent investigations into these matters by external advisors, supervised by a special committee of the Board; and we have taken several capital-related actions.
In the bank’s Wealth Management-related businesses, it registered strong growth reporting net revenues of CHF 3.9 billion, up 3% YoY, with transaction-based revenues up 18%, recurring commissions & fees up 3% and lower net interest income, down 9%.
Credit Suisse’s Investment Bank preserved its momentum as it reported revenues growth of USD 3.+ billion with an 80% jump YoY. Fixed Income Sales & Trading rose 29% year on year, Equity Sales & Trading by 23% and Capital Markets & Advisory6 was up significantly.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.
