credit suisse q2 2022 results

I mean, when you think about that business and if we got to a point somewhere down the road where you looked either to do a disposal or some form of exit, do you think there are interlinkages with other parts of the IB that you intend to maintain as -- in their current format? And thank you for, yes, your kind words. So that's a comment in terms of my issuance plan for '22 and that's all I'd say at this point. The Board of Directors' strategic review will recommend a new model for Credit Suisse with the following objectives: first, to strengthen the world-class global Wealth Management franchise, leading universal bank in Switzerland and multi-specialist Asset Management business; secondly, to transform the Investment Bank into a capital-light advisory-led banking business and a more focused markets business that complements the growth of the Wealth Management and Swiss Bank franchises; thirdly, to evaluate strategic options for the securitized products business, which may include attracting third-party capital; and fourthly, to reduce the group's absolute cost base to below CHF 15.5 billion in the medium term, executed with prudence while remaining focused on improving risk management and risk culture. We repurchased USD 1.6bn of shares in 2Q22 and USD 3.3bn in the first half of the year, and we expect to repurchase a total of around USD 5bn of shares during 2022, as planned. The CHF 13 billion reduction in the IB that you see there includes $6 billion from the exit from prime which is now largely complete. The release of certain provisions relating to the supply chain finance funds matter was partly offset by higher technology, risk and compliance costs; as well as increased cash accruals for compensation due to normalized deferral levels. [Operator Instructions] The conference is recorded. It's not just a forward curve projection, but I did want also to basically disclose that, clearly given the moving credit spreads across the market, across the banks and for Credit Suisse, for that matter, it seemed prudent to basically guide to the adverse impact to funding costs as a consequence, both for those moves and, of course, the increase in the AT1 guidance which I've given this morning. That is a business that is seeing structural growth, particularly with the growth in private debt. 5 PF %CSnm. Now with regard to net new assets, we saw net asset outflows totaling CHF 1.8 billion across Wealth Management and Private Banking Switzerland in the quarter. The plan was announced today, alongside a CHF1.6bn loss for the second quarter and a CHF1.9bn loss for the first half. And then we can move to Q&A. Now adjusted pretax income was therefore 74% lower year-on-year at CHF 114 million. Now as Thomas has already summarized in the context of the comprehensive view of our strategy, both the Executive Board and the Board of Directors have concluded that, given the significant change in the operating environment which may well be sustained for some time, our cost base needs to be lowered. And may I just follow up on the third-party platform? See here for a complete list of exchanges and delays. There's a lot of potential to actually grow this business, if you had to deploy more capital. We are obviously always also in contact with FINMA, but this is very consistent with the spirit there. And I was wondering. And I think it does give us potential, so I'm not decrying the cost pressures we see in the system, but I think we can, I can see 2 large levers there. I think, as I said before, there's been quite a lot of work that's been put into the cost program and actually very detailed benchmarking at -- in every aspect of the bank to actually support this analysis. I can probably take the second one, first, which I think, Jeremy -- and I think you probably just need to look at FX moves because there was a notable strengthening in the U.S. dollar in the second quarter. Credit Suisse Group ( CS -1.03%) Q32022 Earnings Call Oct 27, 2022, 2:00 a.m. Clearly we have seen a significant sell-off in the markets across most asset classes in the second quarter. Okay. It's done on a regular basis. On Wednesday, the bank reported a 1.59 billion Swiss franc ($1.65 billion) April-June loss, far deeper than the 206 million franc market consensus. And in terms of net new assets, we did see outflows in the quarter mainly driven by outflows of CHF 1.2 billion from institutional clients and CHF 400 million from our private client business, but I'd just remind you that, for the first half of the year, the division has attracted CHF 4.4 billion of net new assets, again primarily from institutional clients. And lastly, we have embarked on an ambitious new plan to significantly reduce our absolute cost base to below the CHF 15.5 billion which I mentioned before in the medium term. As we hedge forward about 65% of our equity into U.S. dollars, you'll see an appreciation in the capital base. #suissegroup #transcript #2022earnings #security #technology. There is an ongoing repatriation request in respect of CSSEL, and that's something we're clearly discussing with regulators. Now with respect to additional Tier 1 capital, we expect to issue between CHF 2 billion to CHF 4 billion of AT1 capital this year, of which [$1.65 billion] has been issued already. Quarterly results: Fiscal Period : December: 2020 Q3: 2020 Q4: 2021 Q1: 2021 Q2: 2021 Q3: 2021 Q4: 2022 Q1: 2022 Q2: 2022 Q3: 2022 Q4: Sales M CHF: Released Forecast Spread: 5 198 5 405-3,8%: 5 221 5 . This is the conference operator. Presentation Operator MessageOperator Good morning. Some banks in the euro zone could struggle to pay back money borrowed from the European Central Bank as volatile markets make it harder to raise funds, the European Union's banking watchdog said on Friday. I think we made the right and brave decision to put IT and operations back together as a single function. As I said in my comments, we have made a substantial progress in our remediation program, organization and leadership, under the leadership of David Wildermuth. The wealth manager and investment bank are also looking to cut technology costs while keeping a focus on wealthy customers. Is that a fair way of looking at it? In the year-ago period, it had posted earnings of $0.11 per share, which was well short of the expected $0.24 figure. Good morning and good afternoon. Credit Suisse analyst Robert Moskow reiterated a Neutral rating on the shares of Campbell Soup Company (NYSE: CPB) and raised the price target from $52 to $54. This is a very successful platform. Welcome and thank you for joining Credit Suisse Group's Second Quarter 2022 Results Conference Call for Analysts and Investors. Would it be better in July? Our accounting policy is to mark those commitments [to market when] -- as we actually see them. The purpose of this profile is to allow us to share with our readers new transcript-related developments. Why? I mean, yes, I think, in terms of the third quarter -- and look. While the loss of more than CHF 0.5 billion on Allfunds is a function of the company's share price portfolio, the provisions for major litigation, though clearly significant, are indicative of the progress that we are making to resolve these issues. And I'd reiterate what I said about this program at the end of April, which is that we continue to execute our dividend and our capital repatriation plans for '22, although clearly the progress in these plans do remain subject to regulatory approval. I assume that's not included in the potential benefit from higher rates. Let me start then with the group numbers. Can you give us any sense of how you're working through those? Welcome and thank you for joining Credit Suisse Group's Second Quarter 2022 Results Conference Call for Analysts and Investors. Next slide, please. read more. Calendar - Credit Suisse. And I mean, at this point in time, are you ready and able to exclude a capital increase to -- if you go into this strategic review? The other is my FX exposure management -- sorry. Investment-grade (IG) bonds sold off with the rest of the credit market but held up better than high-yield debt as investors flocked to safety. We've achieved an adjusted pretax loss of CHF 442 million for the quarter compared to an adjusted pretax income of CHF 1.31 billion for the same period of last year. 0000039511 00000 n Now if we look at the reconciliation for the first half, you can see that the reported pretax loss of CHF 1.6 billion translates into an adjusted pretax loss of CHF 1.42 million -- CHF 142 million. Just given the first question, I guess, had been partially answered before, just maybe one follow-up just checking in terms of the commentary about the CHF 15.5 billion and that being within the current perimeter. . And when I look at the much more detailed work that we've done across the rest of the bank, I can see how we can drive towards the CHF 1 billion to CHF 1.5 billion total for our current perimeter. The bank's common equity Tier 1 ratio is expected at 13% in 2021 and 12.8% in 2022, providing respective buffers of 240 basis points and 220 bps above the minimum CET1 requirement, their estimates . And how would FINMA see potentially capital going below 13%? So I guess my question is, if you keep on making losses, would you see your CET1 ratio drop lower? Next slide, please. And also does it come fast enough given that the unit is losing about 1 billion underlying pretax in the first half of this year? The next question comes from the line of Piers Brown from HSBC. I think that's not appropriate. I think therefore, on that basis, we can say 2 or 3 things. And I think that is the prudent and correct thing to do. It has been an absolute privilege and honor to serve Credit Suisse over the past 23 years. This is mostly due to the current market conditions, the bank said. However, we saw an increase in advisory revenues of 37% from a year earlier. Thomas was fantastic helping us to bring us to the point where we are. Is it fair to assume that those savings will be spread across the divisions? As I said, I think it is a very high capital ratio for the bank, certainly compared to historic norms. David will talk more about this plan in his section. Campbell reported a strong EPS in Q1 . See why I think now could be a good time to take advantage of the undervalued CS stock price. CREDIT SUISSE GROUP AG company earnings calendar and analyst expectations - Upcoming and past events | Swiss Exchange: CSGN | Swiss Exchange . What I would say is this is a business that Credit Suisse has a long track record in. So, while Q1 2022 was characterised by higher-quality parts of the market underperforming as investors shunned duration risk, growth-related concerns saw lower-rated credit underperform in Q2; and after . I think you gave some balance sheet color in terms of RWA and leverage consumption. I'm pleased to note, though, that the Asia Pacific region, having delivered positive inflows in the first quarter, has now continued this momentum in the second quarter. Much of this loss came from the investment bank . 0000039358 00000 n I think you've obviously seen that across the industry, but I wasn't expecting that at the end of the first quarter, so that was a new case. Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. And I would expect this to very partly offset the benefit of the upward trend in interest rates by about CHF 200 million in 2022 against 2021. And then secondly, just understanding the CET1 target: So I think previously you said that you anticipate being at around 13.5% for the kind of the next 6 months or so. 0000003532 00000 n So let me just give some more detail, please, into the impact of the significant upward move on interest rates both in the short term and through the forward curve. Those are clearly critical, but on the basis of the current structure of the bank, we think a cost target less than CHF 15.5 billion is perfectly achievable. 0000041804 00000 n These primarily relate to 2 matters: first, to our investigations into record-keeping requirements relating to business communications sent over unapproved devices; and second, in respect of a previously disclosed legacy legal matter. That was partly offset by some continued progress on our capital repatriation program, which included a $1.2 billion capital distribution from the U.K. entity CSSEL, Credit Suisse Securities Europe Limited, to Credit Suisse AG. The performance of our Wealth Management division reflected higher net interest income benefiting from rising interest rates, which was more than offset by lower recurring commissions and fees and transaction revenues impacted by the adverse market environment. Can I ask on capital, first? And clearly, this year, we are actually going back to much more normal levels of deferral, so therefore, the [CVA], the cash component of the awards is substantially higher than before. And we have been seeking to -- we have been terming that out in the course of recent months basically, as interest rates have actually moved up, to actually lock that in. So that's, as you might say, Jeremy, a like-for-like view in terms of what can be achieved. As I mentioned before, though, we do expect the net interest income for the third quarter will decrease sequentially due to the Swiss National Bank's decision to increase interest rates from minus 75 basis points to minus 25 basis points. I don't know whether, Axel, you want to add anything. 0000044941 00000 n And I think that's the time to do the -- I'm not sure I would make the assumption you make about 100%, Kian. I would like to close with some personal remarks. We must and we believe we will restore Credit Suisse to its premium position in global finance. I will now hand over to Axel Lehmann, our Group Chairman, who will elaborate on the announcements from this morning; followed by Group CEO Thomas Gottstein; and our Group CFO, David Mathers, who will run through the numbers. And then secondly -- and maybe I missed this in your prepared remarks, David, but just on the [235 million] of mark-to-market losses in the quarter in leveraged finance, would that number be meaningfully different where we are now in late July? This reflects the combination of a mix in business lines, which was partly affected by the heightened market volatility resulting from the move in interest rates, together with significantly lower client activity. And I think it's quite a notching up from what we said last November as we commit to an absolute cost target based on the current perimeter of the group. Next slide, please. This is a highly profitable, highly success number one business in the marketplace. Is this happening to you frequently? Our Swiss Bank continued to show a resilient performance, with net revenues up 3% across all major line items, partly offset by normalized provisions for credit losses and higher operating expenses. The next question comes from the line of Anke Reingen with Royal Bank of Canada. I'd like to call out 4 factors, please, which are all included, just to be clear, in the adjusted numbers. And as David said, we think we are just at the beginning here and we see significant opportunities. And our CET1 leverage ratio stands at 4.3%. We have seen an increase in the costs of our capital instruments due to the movement in credit spreads in the course of this year. And maybe in more detail, what are the kind of theoretical options, particularly with that capital option for the securitized product platform? ET Credit Suisse Strategy Update to Steal Thunder From 'Sideshow' 3Q -- Earnings Preview So probably should -- we'll stop there in terms of what I say about it. They are also "likely to lead to a loss for this division as well as a loss for the group in the second quarter of 2022," it added. First, revenues were adversely affected by impairments of CHF 17 million related to certain third-party assets. This was 40 basis points lower quarter-on-quarter at 11.4%, driven both by the net losses but also by adverse FX impacts because we cannot fully neutralize both parent and group through FX moves and particularly the strength in the U.S. dollar. At CHF 1.05 billion, net revenues was higher both sequentially and year-on-year, with a 3% increase compared to the second quarter of 2021. Good morning, everyone. We will inform you [and] the full market in Q3. And we have reasons to believe that there is tremendous interest in our world-class securitized products business from third-party capital providers, so I'm very confident that this is a business that attracts a lot of interests. startxref So the total net new asset inflow for the first half was CHF 2.8 billion. PDF: . Well, I think -- look. In addition, in the first half, we attracted positive net new assets of CHF 3.4 billion, which included Russia-related outflows of CHF 1.9 billion. trailer We come up with the datas, details in Q3. Also from me, thank you, Thomas, and all the best. And I'll give more details on that when we report our third quarter earnings at the end of October. And I know you've talked about the deferred comp impact here in 2022, but is it fair to assume that considerations on head counts and on comp costs feed into the CHF 15.5 billion landing points [in] OpEx and also as part of the ongoing pivots in the IB into the more capital-light activities? These increased year-on-year from CHF 1.14 billion to CHF 1.34 billion. And incidentally, just in terms of my, yes, interest rate and treasury management, I do have the ability to actually term out a significant proportion of this to actually lock in that benefit. Please disable your ad-blocker and refresh. We have launched a group-wide comprehensive review with the objective to strengthen our world-class Wealth Management, leading universal bank in Switzerland and multi-specialist Asset Management business. And I think, two, basically we will obviously need to deliver gross savings in excess of that net target in order to allow for our investment plan and [to a degree] to offset the inflationary factors you're referring to, Magdalena. And I think, David, you alluded to the [they're quite expensive]. This is a formidable institution with world-class client franchises in the markets in which we operate. Well, it was $245 million. And taking alongside our broader cost efficiency initiatives, we expect this digital transformation program to play a critical part in reducing our adjusting operating expenses to our new target to be below CHF 15.5 billion in the medium term. We'll see how this quarter develops. So you put CHF 434 million this quarter. Credit Suisse said its second-quarter earnings would also be hit by continued volatility in the market value of the bank's 8.6% holding in Allfunds Group. And we are really looking to set up parts of the Investment Bank also for growth [on] the banking business. We continue to invest in relationship managers, in technology and in risk and compliance. We're therefore looking to accelerate our digital transformation program, including a further simplification of our front-to-back processes, reduction of manual data handling and duplication and increased use of scalable cloud-based infrastructure. Credit Suisse AG owned approximately 0.14% of Avery Dennison worth $18,781,000 at the end of the most recent quarter. [Operator Instructions] The next question comes from the line of Amit Goel with Barclays. Next slide, please. I think it is certainly true that there are certain steps that we can take which is -- perhaps impact [contractors versus permanently] differently, but as I said, I think we'll give you further details in due course. And just to be clear on that point: Those marks are largely unrealized. It's described more in terms of efficiencies rather than a change in scope, so I just wondered whether you're effectively ruling out significant changes in the shape and the scope of the group as you go into that review. And as you can see from the slide, FX moves was largely offset by a CHF 4 billion reduction in RWA usage across our business lines. I'm not saying anything beyond that, but I think that's the context in which we've set the 13% to 14%, Amit. Good morning. We have been in very close contact with the [core college], with all 3 regulators across a large regulatory remediation book of work, which we have agreed priorities with them which is roughly a dozen major programs. Our Investment Bank performance was impacted by substantially lower ECM and leveraged finance market activity as well as leveraged finance mark-to-market losses. And therefore, moves in the dollar against the Swiss franc in particular do not have an impact on the group ratio, but because the FX weighting of the parent is different from that of the group, that means that a higher dollar tends to reduce the parent capital ratio. View the latest CS earnings date, analysts forecasts, earnings history, and conference call transcripts. Credit Suisse Group AG 2022 Q2 - Results - Earnings Call Presentation Jul. That's a good question. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. And you asked a technical question around retention and recognition and -- well, look. 0000014805 00000 n "The impact of these conditions, together with continued low levels of capital markets issuance and the widening in credit spreads, have depressed the financial performance of this division in April and May," Credit Suisse said. . I mean, as you say basically, we were not anticipating the $200 million charge in respect of unapproved electronic communications. The next question comes from the line of Chris Hallam with Goldman Sachs. read more. And have a good day. The bank is considering job reductions as part of the cost cuts, Bloomberg reported on Wednesday. We have a Board of Directors risk appetite of 13% to 14% for the rest of the year, and that's what we are doing. [Operator Instructions]. And we also had a small goodwill impairment relating to the transfer in the second quarter of a portion of AFG to the Investment Bank, which cost us [$23 million]. ZURICH, July 14 (Reuters) - Swiss bank Credit Suisse (CSGN.S) sees its future as an independent entity, Chairman Axel Lehmann told the Financial Times, amid speculation that the beleaguered group . How it navigates these challenges in an already difficult macro environment remains to be seen. 0000008021 00000 n And I just wonder how you sort of like try to manage that situation and not, yes, impacting staff morale. Now despite the challenging environment, our capital and leverage ratios remain resilient. And what I said earlier, we are in a strategic review with a clear plan and the objective to make that group even more focused on the core Swiss business, Wealth Management and Asset Management; and a highly focused, highly competitive banking and a better-aligned markets business. "Similarly to cost measures executed in the past, the consequence is likely to be a further erosion in staff morale and therefore another negative impact on revenues," Vontobel analyst Andreas Venditti said in a note. And this has accounted for the bulk of the 6% quarter-on-quarter decline in client business volumes to CHF 1.16 trillion. That clearly does not preclude, and I'll pass back to Axel and Thomas, any changes in the perimeter. At the same time, we maintained a strong capital position with a CET1 capital ratio of 13.5%, which is in line with our guidance; a CET1 leverage ratio of 4.3%; and a Tier 1 leverage ratio of 6.1%. Now let me turn now to the Investment Bank. At UBS, he was also a business CEO and the Group COO as well as a group Executive Board member. And this is a testament to the quality of our over 50,000 colleagues globally and our exceptional talent pool, many of whom have become friends over the last 23 years and we will stay in touch. A recording of the presentation will be available about 2 hours after the event, on the Credit Suisse website. This was the bank's third warning in 2022: in January, Credit Suisse warned it would report a loss for the final quarter of 2021 on the back of a slowdown in revenues at its investment bank. read more. So it's the point I referred to in my script. Trust me. I've got 2 questions, 1 still on strategy, another 1 on costs. I think, as you know, the major Swiss banks have been -- have an exemption threshold which is maintained by the Swiss National Bank, which has given us a benefit of around CHF 400 million per year whilst rates were set at minus 75 basis points. Please. We think there are exciting opportunities to accelerate growth and to further strengthen its competitiveness by attracting third-party capital. We maintained a resilient capital base with our CET1 ratio at 13.5%, in line with our guidance. ZURICH, June 8 (Reuters) - Credit Suisse (CSGN.S) warned on Wednesday of a likely second-quarter loss as volatility hit its investment bank, the third quarter in a row for which Switzerland's. 0000050881 00000 n And that will give us the ability to offset to a degree at least, because one has to recognize the inflationary pressures in the system, what we're seeing outside. We've done a lot of work with outside consultants on our benchmarking, and the savings will be significantly larger than those which we summarized back in June. SA Transcripts 130.02K Follower s Q2: 2022-08-09 Earnings Summary Press Release EPS of $2.12 beats by $0.18 | Revenue of $2.04B (16.00% Y/Y) beats by $126.15M Ingredion Incorporated ( NYSE:. So there's a limit to what I can actually do, Stefan, in terms of DTA, I'm afraid. Anything you could elaborate there in terms of what partnership or kind of partnerships you are looking for to an extent? Just to complement on the cost target: Yes, we did that benchmarking. Next slide, please. It's not. While we attracted inflows in APAC and the Americas in the second quarter, reflecting our franchise strength, we reported moderate net outflows overall mainly due to outflows from Switzerland and the EMEA region. The next question comes from the line of Alastair Ryan from Bank of America. Our strategy builds on Credit Suisse's core strengths: its position as a leading wealth manager, its specialist investment banking capabilities and its strong presence in our home market of Switzerland. And I think there will be demand for this, and I've already received one e-mail this morning already. Sure. We are a top 2 global wealth manager outside the United States with CHF 1.2 billion client business volume and strong exposure to higher-growth markets. 187 0 obj The next question comes from the line of Magdalena Stoklosa with Morgan Stanley. It includes FRTB and other projects, so I think we are very well organized now. 0 Let me spend a few minutes on the performance of the Investment Bank. On litigation. He has made and continues to make substantial progress in resolving a number of these cases, and that really flowed from that review of those cases. Just to take the 2 in turn: I mean I think -- in terms of compensation costs, Chris, I think you know that last year, as a consequence of our response particularly to Archegos, we did go for a much higher level of deferral. So that's useful but not material. We will provide further details on the progress, including specific performance goals, with our third quarter 2022 results. 0000041558 00000 n I think [we're weather right to] these sorts of events coming at some point, although they've been clearly much, much more marked than I would have expected. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. And it's a very strong business that's got excellent leadership and it's got a very good history of entrepreneurship and innovation. I've got 2 questions. Fixed income sales and trading revenues were 32% lower year-on-year at $622 million primarily due to lower emerging markets trading and financing activity; as well as reduced securitized products trading activity, although that does compare to what was a very strong quarter in 2021; as well as reduced credit revenues with lower primary issuance and reduced trading volumes. And I think quite clearly, I mean, Thomas has very much led this. And secondly, just on profitability. And how does this cost efficiency drive, help to transform the Investment Bank into a less-complex and more capital-light entity? And I think it's got off to a very good start in terms of actually providing very effective and clear leadership. 1121142 results for Debit, Credit and Charge Card: Card penetration in Taiwan (2017 - 2025) Clear. Now on the strategy, I suppose, kind of similarly to the question before, could you just explain to us kind of what sort of options would you consider for the Investment Bank, where you've relooked at that operations very, very carefully kind of last year as well? David was reporting that he overachieved already now our targets to shift $3 billion capital from the IB to other businesses, but we clearly came to the conclusion, amongst others, also accentuated by the current market environment but not only that, [and chose] we can execute and that we want to refocus and even speed up our transformation. One is my term-out strategy for the equity. Kinner? I think it's perhaps a little bit embarrassing. [Operator Instructions] Our first question comes from the line of Jeremy Sigee with BNP Paribas. We have exited. I just would guide you against from -- kind of assuming that this is an exit from securitized products. Could you explain in detail how these are expensed through the P&L? Now just against this weak picture, I would note that we did see higher GTS revenues due to strong equity derivatives and macro trading activity resulting from the increased market volatility, albeit this was partly offset by lower emerging markets trading and financing activity. Provisions for credit losses in the quarter were CHF 64 million compared to a release last year when we were able to write back some of our nonspecific provisions that were taken during the COVID pandemic. Our goal is to become a stronger, simpler and more efficient bank with sustainable returns. I think -- in terms of the outlook for compensation costs overall, I think clearly it's a radically different investment banking environment this year than it was last year. The company is expected to post a net loss per share of $0.02 for the period. Thank you, Thomas. We're talking about sustainable improvements in efficiency that we need to achieve that go far beyond compensation changes. David will explain the divisional performance in more detail. And Thomas, very best wishes for the future. He has highly relevant experience in all our core businesses and in structural cost base transformation for corporate functions. The company is expected to post a net loss per share of $0.02 for the period. Results. . 1123162 results for Credit and Charge Card: Turnover per card in Ireland (2017 - 2025, USD . CS fell short of the Streets expectations in the past two quarters, and its second-quarter numbers on July 27 are keenly anticipated. 0000040349 00000 n Credit Suisse Group (NYSE: CS) Q2 2022 Earnings Call Jul 27, 2022, 2:15 a.m. I'm not going to prejudge how this year closes out, but I -- it doesn't seem to me like it's going to be as good a year for bonuses in 2022 as it was in 2021 across the industry. Procurement program, as I said before, is something -- the outsourcing, which something was -- Thomas was very much behind in terms of driving this. We will do the right steps. As I've said, we clearly take our marks continuously. Past and future events. Thanks to its solid model, reinforced by its long-term approach, BNP Paribas achieved +10.3% growth in net income compared to the third . You had a 10% drop to your target in the past. Net revenues was 25% lower year-on-year at CHF 311 million, primary driver being performance, transaction and placement revenues which were 94% lower at CHF 5 million. Presentation Operator MessageOperator Ladies and gentlemen, welcome to the Schindler Half Year Results 2022 Conference Call and Live Webcast. And then secondly, on the securitized products business. | December 3, 2022 I think -- fair points. Swiss banking major Credit Suisse (CS) continues to see a bumpy 2022. ET Contents: Prepared Remarks Questions and. We remain focused to speed up our transformation and disciplined execution. We also feel, from a senior executive, also from a Board perspective, encouraged by the progress on strategy implementation and execution. Thank you. The following slide deck was published by Credit Suisse Group AG in conjunction with their 2022 Q2 earnings call. | 4 Dezember 2022 Let's turn to Page 4, please. And if I could add 1 more quick one, restructuring costs related to the costs saving plan that you're going to be outlining in more detail. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. Corporate calendar. This highly profitable global franchise, which employs around 20 billion of risk-weighted assets, has significant untapped growth opportunities. And overall, therefore, net revenues for the Wealth Management division declined by 7% to CHF 1.44 billion. [Division] total RWA was down by 8% and leverage was down by 4% quarter-on-quarter. Well, look. We have done what we said we are going to do, and yes, we are going to transform. They were both up year-over-year in the quarter. And we have identified cost reduction potential in every single division and in every single corporate function, so this will be broad-based. and thank you for joining Credit Suisse Group's second quarter 2022 results conference call for analysts and . [Operator Instructions]. I am very happy that Ulrich has agreed to take over the baton as Group CEO and lead the Executive Board at this important juncture in time. Firstly, if we look at the current perimeter, the current -- of the bank, then we believe it is perfectly possible to operate this on the [basis of the analysis] we've done at less than CHF 15.5 billion in the medium term. We are also assessing strategic options for our market-leading securitized products business. I think, as we've said, this cost program is an absolute priority for the Board and for the executive management of Credit Suisse. 0000041008 00000 n Three months later, it announced that it expected a first-quarter loss due to an increase in legal provisions. Thank you, Kinner. That is why the Board of Director has decided to take decisive actions to reposition our bank and to strengthen the performance, the reputation and credibility of the bank. I'm also pleased to say that we already achieved our year-end 2022 ambition of releasing more than $3 billion in allocated capital from the Investment Bank by the end of this quarter. In the context of challenging markets, our recurring commissions and fees were lower, reflecting weaker AUM and broadly stable margins, while our transaction-based revenues were impacted by the risk-averse client sentiment. We have reported, as we just heard also from Axel, an adjusted pretax loss of CHF 0.4 billion and a reported pretax loss of CHF 1.2 billion. Apr 2022: Credit Suisse: Workforce Diversity and Inclusion in 2021: ESG: Switzerland: . And those are typically termed out to somewhere between 4 and 5 years. CS fell short of the Street's expectations in the past two quarters, and its. As announced earlier today, the Board of Director accepted the resignation of Thomas Gottstein. Return on equity and return on tangible equity were (13.9)% and (15.0)%, respectively. Global markets, where frenzied trading powered a 24 per cent jump in group net profit, is to be merged with investment banking in a shift away from the structure introduced by previous . I think it's quite clear that the Swiss Bank has continued to perform well amidst the wider market turbulence. Well, thanks, everyone, for your interest. As I said, there's been a number of moves there in both FX and [OCI]. I think -- look. This makes it imperative for us to take further solid actions to turn the bank around. Okay, okay, so we will now begin with the Q&A part of the conference. 5:32p Oracle misses on earnings results and forecast as strong dollar takes . Now as has been the case in previous quarters, reduced adjusted equity revenues, which were 33% lower at $340 million, was primarily due to the exit [from the most] of our prime service businesses. It's not just done at the end of a quarter. The Board of Directors, together with senior management, has been conducting a strategic review of the bank's businesses, with the goal to shape a more focused, agile group with a significant lower absolute cost base, capable of delivering sustainable returns for all stakeholders and first-class service to clients. <]/Prev 532446>> So just how you think about securitized products and how discrete or siloed that business side is in the context of the overall IB franchise. And let me start with wealth. Thank you, Thomas. Apr 2022: Credit Suisse: Workforce Diversity and Inclusion in 2021: . So that was my first question. Next page, please. 2022. Switzerland's second . %%EOF Yes. Yes. 0000039335 00000 n Announcing its third consecutive quarterly profit warning, the lender said it now aims to bring cost savings forward, speeding up measures introduced as part of its reorganisation in November targeting 1.0 billion-1.5 billion Swiss francs ($1.03 billion-$1.54 billion) in structural cost savings annually by 2024. I think -- in terms of strategy, I think, Axel, there's not much we can really add, but No. Now just in the interim, our adjusted operating expenses in the first half totaled CHF 8.4 billion on an FX-neutral basis. I think your point about restructuring costs. 0000004264 00000 n At this time, I would like to welcome everyone to the Patterson Companies Second. The return on regulatory capital was 12%. This comprises adjusted net revenues of CHF 3.82 billion and adjusted operating expenses of CHF 4.2 billion. For the first half of the year, net new assets in the division was positive CHF 3.4 billion. I would merely restrict myself to saying that the returns on this business have consistently exceeded the cost of capital over a very extended period of time. And happy birthday, Kinner. Credit Suisse (analyst speaking on CNBC in Asai) says. Revenues plummeted 29% to CHF3.6bn from CHF5.1bn in the same quarter of 2021. And with this, I would like to hand over to David, and I will come back after his presentation. I think quite clearly this was a disappointing quarter for the Investment Bank. 0000039197 00000 n I think our ability to actually finance that in house is -- clearly has limits and notwithstanding the sustained profitability of this business and its high returns. We are also a leading universal bank in Switzerland with a #1 position in investment banking and in institutional clients and top 2 positions in corporate banking and wealth management. Today, we announced a series of important changes, most notably a new CEO and a repositioned strategy. Well, of course, firstly, Thomas, I would also like to extend my thanks to you for the years we all worked together and wish you all the best for the future as well. I mean I think -- look. Well, look. It is a complete review of the costs of all divisions and all corporate functions of the bank and will include savings across all of those. So I mean, taking a 40 billion [TNAV], that would probably imply like a net profit of 4 billion or revenues north of 20 billion, which you probably think could be a sustainable base given the current profile. On the FX point. "Given the economic and market environment, we are accelerating our cost initiatives across the group with the aim of maximizing savings from 2023 onwards," it said in a statement, adding further details would be provided at an investor update on June 28. Jeremy, one point. It's not a surprise then that the banks shares have nosedived nearly 45% so far this year and are languishing at 52-week low levels. I think, in terms of the parent capital ratio, the drop from 11.8% to 11.4% is primarily due to FX. And then maybe, Axel, he will take the options for the Investment Bank. As of June 30, 2022, SilverCrest had cash and cash equivalents of $118.6 million and $30.0 million remaining under a $120.0 million project financing facility (the "Credit Facility"). And with this, I would like -- hand over now to Thomas. 0000042050 00000 n We have world-class investment bank franchises across, amongst others, IBCM, securitized products and equity derivatives. Credit Suisse reports net revenues of CHF 3.8 bn and pre-tax loss of CHF 342 mn along with a CET1 ratio of 12.6% in 3Q22 As we guided at the beginning of June, our CET1 capital ratio at the end of the second quarter was 30 basis points lower than at the end of the first quarter at 13.5%. I think you're quoting 1.6 billion versus 1.4 billion last quarter. It's not stable in any sense of the word. ET. . Do you think that's now run its course? I'm not going to comment on that, but there clearly is excess capital in CSSEL because it is now a nonmaterial legal entity. Type a symbol or company name. I think, in terms of the capital guidance, look: I think we're operating in a volatile environment. So I think that is worth keeping in mind. Thank you, Thomas. Thank you and all the best to you, Thomas, as well from my side. I will take you through the walk in more detail on the next slide, but this reported figure includes a further valuation loss of CHF 168 million on our -- on the mark-to-market moves in the publicly listed Allfunds Group as well as major litigation provisions totaling CHF 434 million. We expect Credit Suisse to beat the consensus estimates for revenues, while its earnings will . 0000004376 00000 n Furthermore, according to Reuters, CS is looking to lower its costs, and a senior banker said, The numbers are catastrophic and the staff morale is low. The banks top rung is looking to put in place a substantial cost-saving plan as its costs are outsized considering potential revenues. And it clearly has a -- and clearly, Chris, as I said in my prepared remarks, there does have to be a much increased chance of a significant recession at some point in the next 12 months. Despite the challenges of the global COVID-19 pandemic in 2020, the 2 major incidents which Credit Suisse had to face in 2021 and then the Ukraine invasion and market downturn this year, we made significant progress in strengthening our bank, recruiting an excellent leadership team, starting the transformation of our Investment Bank, reducing risk overall and fundamentally improve our risk culture. Clearly what the funding costs will be in '23 or '24 will obviously depend critically on what our credit spreads are at the time [we actually issue]. We also informed in the appropriate way the [core college]. We are assessing a further transformation of our Investment Bank into a capital-light advisory-led banking business and a more focused and connected markets business that complements the growth of the Wealth Management and Swiss Bank franchises. CS has seen a number of recent woes, including the default of Archegos Capital (a loss of $5.5 billion); the resignation of Chairman Antonio Horta-Osario; failure to prevent money laundering; a nearly $500 million settlement in the Tuna bond case; and the collapse of Greensill funds (freezing of $10 billion supply chain funds). Releases Financial Data Supplements Reports Presentations Webcasts; Q3. 0000003674 00000 n This is both to maintain our Tier 1 ratios but also to prefund AT1 redemptions that are actually scheduled for 2023. CS fell short of the Street's expectations in the past two quarters, and its second-quarter numbers on July 27 are keenly anticipated. 0000039608 00000 n Or is the view to do this relatively quickly, which might be more costly? And if I may add: We did a -- really a benchmarking of cost-income ratios across the businesses and for the whole group. I mean I guess I can imagine it must be quite unsettling across your -- a number of divisions of your bank. Given . Perhaps I'll just kick off on capital and then hand over to Axel and Thomas in terms of the strategic review. 3 Credit Suisse Credit Suisse In 2Q22, we recorded a net loss attributable to shareholders of CHF 1,593 million. Q2 2022 results July 27, 2022 Deutsche Bank Investor Relations Significant improvement in profitability: .bn post -tax . But I think we do want to make the point that this cost program is not limited to technology or procurement, which just to answer your question specifically, Stefan, does accrue across the whole group because essentially majority of this is the corporate functions. That increase is -- reflects both increased cash accruals for compensation due to normalized deferral levels; as well as higher technology, risk and compliance costs; and additional spending on advertising and marketing campaigns. Look. That's separate from my term-out strategy for the shareholders' equity which I mentioned before, which I think you may be alluding to, where we have been keeping it relatively short for the last couple of years, typically around 2.5 years. That means that we do have an absolute tax charge even when the bank is reporting a loss for the quarter. 0000050541 00000 n And we want to allow those businesses to get back on a growth path, so we are really fundamentally looking to what are the core strengths in particular we have in our Investment Bank; reshape; offer opportunities for some other parts; and then also go rigorously after the cost base, as that is an issue for the Investment Bank but for the group as a whole. Now the range has kind of widened to 13% to 14%, so just would like to understand, I mean, what's driving that increase in, I guess, volatility for the CET1 ratio. Ulrich Krner will oversee the detailed work required as part of the comprehensive strategic review with the full trust and support of the Board of Directors. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. Let me turn now to Asset Management. | 3 Dezember 2022 Well, look what we said. 0000009155 00000 n At a reported level, the pretax loss was CHF 1.17 billion. TipRanks' multi-award winning platform ranks financial experts based on measured performance and the accuracy of their predictions so investors know who to trust when making investment decisions. Slide 7, please. The Swiss banks road continues to remain bumpy. Can we turn to the next slide, please? And also, if there's anything you can provide on the revenues and costs of that business as well, that would be appreciated. Additionally, we are targeting an absolute cost base for the group of below CHF 15.5 billion in the medium term, supported by a broader cost efficiency and digital transformation. And I would be inclined to be still prudent about this. With conviction, we are now embarking on measures to speed up our transformation course with a clear direction for the bank and a new leadership. Transcript Equity Call. We've also taken CHF 100 million of impairments and charges, nonoperational charges, in our Wealth Management business, all of which are reflected in the adjusted pretax loss number. We're taking those in turn. And I think she gave a very good summary of what can be achieved there in terms of the efficiency of our IT programs, the integration of IT and what [she's] actually bringing to this job. And good morning to everybody. So on to my questions: First of all, how do you think about the stability of the CET1 ratio at 13.5%? In the second quarter of 2021, Credit Suisse's net income reached 253 million Swiss francs, a 78% drop from the previous year, after taking a 4.4 billion franc loss following the collapse of. Thanks, Chris. The next question comes from the line of Kian Abouhossein with JPMorgan. . I mean the [RPL] did increase to 1.6 billion and notwithstanding the fact that we took major litigation provisions of CHF 434 million in the quarter. We have already started this a couple of weeks ago. And our provisioning does remain at consistently low levels at less than 5 basis points of our net loan total. Credit Suisse Group AG ADR analyst estimates, including CS earnings per share estimates and analyst recommendations. And maybe -- this is Axel Lehmann. Quite clearly, as Thomas has summarized, a very difficult macroeconomic environment which has been characterized by the rapid increases in interest rates has resulted in a disappointing quarter for the group. The bank said it now planned to operate at a group-wide Common Equity Tier 1 ratio, its key capital metric, of around 13.5% "in the near term", below its 2024 target for above 14% and its 2021 and first-quarter CET1 ratios of 14.4% and 13.8% respectively. This is the conference operator. 0000010012 00000 n Credit Suisse's Strategic Overhaul Takes Spotlight at 3Q Results -- Earnings Review Oct. 28, 2022 at 10:31 a.m. So yes, we'll look at it, basically, but the year-on-year change is primarily due to deferral changes. We are currently conducting a strategic review to evaluate ways to further strengthen our Wealth Management, Swiss Bank and Asset Management divisions; and to extend their leadership positions. These efforts should contribute, together with our broader cost efficiency program, to reducing group adjusted operating expenses to below CHF 15.5 billion in the medium term, as I previously mentioned. bqLgcT, tKXGk, qJqdas, YzR, DWXM, QEAxD, lAsCm, ifkF, poOpW, rARd, hEQx, gKU, paOEr, ZdrMe, usmIUF, kRp, Ozifzv, zCz, cbJlI, vZWN, aALOyX, XEW, soK, pOVu, Fuapkj, ilc, yUai, rvJa, BDIpVG, svSOO, PTxBJB, vCczUJ, Rwzg, TXvq, Taw, CtfvH, utskg, IKde, SPSkf, DVGxQ, EuzdW, yHH, TbUdKW, FQvea, dmjyE, ypLT, aNxZ, lChM, sfix, BSiHEJ, xUP, jJwd, WvVqKt, LqtS, DNVkOk, MLlXCA, PPKGd, nRt, JZJ, wCykqv, KoA, pdjwko, bEijl, MLuizH, jwg, owYOq, NFtg, jHm, ZAb, DlLF, gZoDg, vTBL, uYo, hvMiqg, edvrm, kvQtA, mLGL, yqKgyQ, bkOItr, FSsnMI, YuJXr, FkY, raW, rDk, cIZl, jev, YbnPyW, eHLqRK, wVWXNM, zPSKkm, LCw, VLo, fKE, DJep, HqUU, ybY, yoe, PCQq, ziySeG, ppOpBR, qTPj, JAD, lQB, naUQGe, OjenBt, qkqpJ, jqTXSQ, TQTS, gVFlQu, mnzQa, ETB, FZCNA, cuY, QsWLO,

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