Credit Suisse earnings Q3 2021

Credit score Suisse has crushed analyst estimates for the third quarter however took a success from fees referring to allegations of corruption in Mozambique and different authorized points.

Web revenue attributable to shareholders got here in at 434 million Swiss francs ($476 million) for the third quarter, the financial institution mentioned Thursday, above analyst estimates of 333.8 million Swiss francs in line with information from Refinitiv. Nonetheless, the third-quarter outcomes had been down over 20% from a yr earlier.

The Swiss financial institution mentioned revenue was hit by “main litigation fees” of 564 million Swiss francs, together with 214 million Swiss francs referring to its settlement over the “Mozambique matter” and “litigation provisions in reference to sure different legacy issues.”

The Swiss financial institution has been fined by world regulators following a corruption scandal involving the Mozambique’s tuna fishing trade.

Listed below are different highlights for the quarter:

• Income rose to five.4 billion Swiss francs from 5.2 billion Swiss francs a yr in the past
• CET 1 ratio, a measure of financial institution solvency, was 14.4%, up from 13% a yr in the past

The financial institution mentioned its outcomes acquired a lift from its wealth administration division. Web income at this unit rose 3% to three.3 billion Swiss francs, with belongings beneath administration up 9% to 843 billion Swiss francs.

“Wealth Administration companies returned to sturdy web new belongings and better transaction revenues sequentially, whereas recurring commissions & charges and consumer enterprise volumes demonstrated robust yr on yr momentum,” the financial institution mentioned in its earnings launch Thursday.

Credit score Suisse’s funding banking division income rose 10% to 2.5 billion Swiss francs.

Shares of the Swiss financial institution are down 12% year-to-date.

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