Credit Suisse Posts Third Consecutive Full-Year Loss -- Earnings Review
February 14 2018 - 9:58AM
Dow Jones News
By Pietro Lombardi
Credit Suisse Group AG (CSGN.EB) released 2017 results Wednesday
morning, showing its third consecutive full-year loss. Here are
some highlights:
LOSS: Credit Suisse posted a full-year net loss of 983 million
Swiss francs ($1.05 billion) after 4Q results were hit by a
significant charge related to U.S. tax reform. The 4Q loss was
CHF2.13 billion, compared with a CHF2.62 billion loss. However, the
results beat expectations. Analysts had expected Credit Suisse to
report a 4Q net loss of about CHF2.25 billion, according to a
forecast provided by the company. For 2017, the net loss was
expected at about CHF1.11 billion.
REVENUE: Credit Suisse revenue was roughly flat at CHF5.19
billion, surpassing expectations of about CHF5.04 billion,
according to the forecast.
WHAT WE WATCHED
U.S. TAX-REFORM HIT: Credit Suisse 2017 results include
income-tax expenses of CHF2.74 billion "primarily related to the
reassessment of deferred taxes resulting from the U.S. tax reform,"
the bank said. Credit Suisse last year said that it expected a
roughly CHF2.3 billion writedown of deferred tax assets in the U.S.
due to tax reform. DTAs, or deferred-tax assets, are past credits
and deductions that companies can use to offset future tax
payments.
ASIA-PACIFIC: Credit Suisse's wealth-management and connected
business in the APAC region had 2017 adjusted pretax income of
CHF820 million. This is in line with the forecast the bank gave at
investor day in November, when it said that, by the end of 2017, it
expected to meet its 2018 target of CHF700 million in adjusted
pretax profit at the business. The business, whose 2018 target was
raised to CHF850 million, "delivered its best quarterly results to
date," it said.
COSTS: Credit Suisse achieved its 2017 cost target. The adjusted
operating cost base for the year was CHF18 billion at constant
foreign exchange rates--CHF17.7 billion at actual rates--in line
with the bank's November guidance.
Write to Pietro Lombardi at pietro.lombardi@dowjones.com
(END) Dow Jones Newswires
February 14, 2018 09:43 ET (14:43 GMT)
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