Credit score Suisse misses analyst expectations with a 38% fall in internet revenue

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A Swiss flag flies over an indication of Credit score Suisse in Bern, Switzerland

FABRICE COFFRINI | AFP | Getty Pictures

LONDON — Credit Suisse on Thursday posted a 38% slide in internet revenue for the third quarter, because the coronavirus pandemic and “vital” overseas trade headwinds weighed on the financial institution’s earnings.

Web revenue attributable to shareholders got here in at 546 million Swiss francs ($600 million), under the 679 million Swiss francs that analysts had anticipated, in accordance with Reuters Eikon.

It marks a 38% slide from internet revenue within the third quarter of final yr, though the financial institution’s outcomes throughout that interval have been bolstered by the sale of its InvestLab fund platform to the Allfunds Group.

Within the second three months of 2020, internet revenue was 1.16 billion Swiss francs.

“Regardless of the Covid-19 pandemic and vital overseas trade headwinds as a result of sturdy Swiss franc, our efficiency within the first 9 months of this yr has been sturdy,” Thomas Gottstein, CEO of Credit score Suisse, mentioned in a press release.

Different highlights for the quarter:

  • Web income dropped 2% to five.2 billion Swiss francs from 5.3 billion Swiss francs a yr in the past;
  • CET 1 ratio (a measure of financial institution solvency) reached 13% from 12.4% a yr in the past.

Web revenues at Credit score Suisse’s funding banking division rose by 11% within the third quarter from a yr in the past, on “constructive” market situations and better shopper exercise, primarily in Asia. Mounted revenue gross sales and buying and selling revenues grew by 10% year-on-year, whereas fairness gross sales and buying and selling revenues elevated by 5%.

Nevertheless, in its wealth administration division, sturdy transaction-based revenues have been greater than offset by decrease charges and internet curiosity revenue. Income on the closely-watched division fell 10% year-on-year.

Going ahead, the Swiss financial institution mentioned it anticipated momentum in its funding banking arm to proceed.

“We might count on this atmosphere to proceed to lead to elevated ranges of transactional and buying and selling exercise, throughout each our wealth administration and funding banking companies, as our shoppers reply to the macroeconomic uncertainties,” the financial institution mentioned in a press release.

Credit score Suisse added that it was planning to pay out the second tranche of its 2019 dividend and resume its share buyback program in January, with the goal of repurchasing between 1 and 1.5 billion Swiss francs of shares for the complete yr.