CS Credit Suisse Group

   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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