Credit Suisse posts net loss of CHF 252M for Q1 2021
Credit Suisse today posted its financial report for the first quarter of 2021, with results affected the US-based hedge fund matter.
Credit Suisse recorded a pre-tax loss of CHF 757 million in 1Q21 and a net loss attributable to shareholders of CHF 252 million, including a pre-tax charge of CHF 4.4 billion relating to the US-based hedge fund matter. The underlying business results have been strong with adjusted net revenues excluding significant items and the US-based hedge-fund matter were CHF 7.4 billion, up 35% year on year, and higher adjusted pre-tax income, excluding significant items and the US-based hedge-fund matter, of CHF 3.6 billion, up 280%.
As per close of business on April 21, 2021, Credit Suisse has now exited 97% of the related positions and expects to take an additional loss in 2Q21 of approximately CHF 0.6 billion in connection with the US-based hedge fund matter.
In Credit Suisse’s Wealth Management-related businesses, the bank delivered strong growth across its franchise and reported net revenues of CHF 3.9 billion, up 3% year on year, with transaction-based revenues up 18%, recurring commissions & fees up 3% and lower net interest income, down 9%.
Credit Suisse’s Investment Bank continued to demonstrate momentum as revenues increased to USD 3.9 billion, up 80% year on year, benefitting from a strong performance across all products. Fixed Income Sales & Trading was up 29% year on year, Equity Sales & Trading was up 23%, and Capital Markets & Advisory6 was up significantly.
As previously guided, the Board of Directors amended its dividend proposal to shareholders at the AGM on April 30, 2021. It is proposing to distribute an ordinary total dividend of CHF 0.10 gross per registered share, half from retained earnings and half out of the capital contribution reserves.
Depending on 2021 financial performance, the Board of Directors would intend to restore the dividend in 2021 before any resumption of share buybacks.