Credit Suisse has reported a net loss of CHF983m (€852m) in 2017, largely due to CHF2.74bn (€2.38n) in income tax expenses, the group reported. The results exceed analyst forecasts.
Overall, the bank’s pre-tax income rose to CHF2.8bn (€2.43bn), with net net assets in the wealth management division growing by 27% over the past year.
Credit Suisse CEO Tidjane Thiam commented on the results: “2017 was a crucial year of delivery in our three-year restructuring plan, after 2016, which was a year of deep radical reorganisation and restructuring. It was key for us to demonstrate that our new structure is effective and that the strategy formulated in 2015 is working.
Thiam highlighted that the bank’s trading activities benfited from the recent period of volatility at the beginning of 2018, with net trading revenues growing by 10%, largely due to outperformance on the equities derivatives and securities markets.
At the same time, Thiam also acknowledged that the combination of market volatility and the prospect of central bank rate hikes continues to represent a challenge for the bank’s primary calendar, with client’s being increasingly reluctant to complete transactions.