Of Special Interest
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- Newslink Trends-The Global Strategic Perspective
- Juniper Research says digital wallet users to exceed 4.4 billion by 2025, as mobile drives digital payments’ revolution
- Criminals exploit COVID-19 pandemic with rise in scams targeting victims online
- Equifax says Open Banking proving pivotal to pandemic lending
- Consumer confidence in banks, credit card providers and investments remain stable as demand supercharges digital finance says Toluna research
- Mintos says Europeans are starting to embrace investing
- US banks see IT modernisation as a way to improve customer experience
- Risk mitigation in global trade depends on digitisation-Andrew Raymond, CEO, Bolero International comments
- Juniper Research new study says the volume of B2B payments facilitated by non-banks will exceed 53 billion in 2022, from a COVID-related low of 38 billion in 2020
- CMA issues fifth publication over 3 years of the service quality league table of personal and business current account providers
- Barclays says scammers take advantage of COVID-19, cashing in on nations’ uncertainty
- S&P Global report says financial market infrastructure sector's earnings likely to cool off In second half
- Global banking market capitalisation slumps by over 30% amid pandemic says Buyshares research
- Digital wallet spend in Europe & North America to increase by 40% in 2019, finds study
- Juniper forecasts mobile money transactions will exceed 200 billion by 2024
- Banks can save the world from climate change, says former UN climate chief
- Research by NatWest reveals gender divide over attitudes to saving
- Europe’s big bank problem: too much capital is trapped in the US, says Scope
- Later-Life lending market set to almost double in the next 10 years, finds report
- Barclays/Cebr report challenges nation to think differently about wealth
- Fifth of UK investors looking to debt investment, new research reveals
- Regtech will play a more important role in PSD2, says Mitek
- Banks turn to Fintech partnerships to improve customer experience, finds Fraedom
- New industry code to tackle fraud must deliver, says Which?
- New TTF report highlights loss of trust in financial services
- Arxan highlights financial app vulnerability epidemic
- SAS asks whether banks really need to choose between operations and innovation
- Which? raises alarm as almost 1,700 free ATMs become fee-charging
- Financial wellness affects half of peoples’ mental or physical health, finds report
- Study finds traditional financial institutions embrace Fintech disruption
- Grass is greener for environmentally friendly businesses, finds Barclays
- Prospective homeowners would consider a 40-year mortgage to escape renting, finds Santander
- Millennials’ needs are changing the face of banking industry, says new report
- FS is putting consumer data at risk by failing to protect mobile apps, says Arxan
- A lack of belief in their ability holds 28% women back in work, says Cambridge & Counties
- ‘Which?’ reveals Scotland has lost over a third of its bank branches in eight years
- Next downturn unlikely to be as bad as 2008, according to S&P
- FCA reveals findings from first cryptoassets consumer research
- US consumers favour single mobile app for banking and payments
- Banks suffering major IT shutdowns every day, ‘Which?’ reveals
- The US will be a key offshore centre in 2019, says GlobalData
- Debit industry changes markedly in 10 years of the Debit Issuer Study
- UK's ‘Big Five’ face ‘too big to compete’ as small challengers secure stellar returns
- Banks as vulnerable now as before crash, says new study
- Leverage ratio a constant conundrum for European and US banks, says SNL
29th July 2011
Credit Suisse profits down - announces cuts
Credit Suisse reported Q2 net attributable of CHF 768m (€663m £585m $958m ¥74.5bn Y6,170m) and half year of CHF 1,907m (€1,646m £1,454m $2,378m ¥185.1bn Y15,321m) DOWN 52% and 48% respectively. The biggest problem was in the fall in trading revenues. Noticeably Credit Suisse showed falls across the board, whilst rival UBS showed growth in some areas although was also affected by the FICC falls. The fall in Credit Suisse profit was significantly greater than the market had expected.
Chief Executive Brady Dougan and Chairman Urs Rohner were of the opinion that the market was to blame and more significantly that it would be irresponsible to assume an early improvement. A 4% staff reduction in employees was announced, amounting to around 2,000 jobs. The cuts will be biased towards FICC as this is the unit most affected. Smaller cuts will occur in other divisions and all geographies. The bank is intent on saving CHF 1bn in costs per annum starting next year. Many of the cuts may fall with people only recently recruited since the financial crisis. The bank charged restructuring expenses of CHF 142m to Q2 and will charge between CHF 260m and CHF 310m restructuring costs during the remainder of this year.
Brady W. Dougan, Chief Executive Officer, said: "In order to ensure attractive returns in the face of an uncertain and challenging economic and market environment, we continue to be proactive about seeking cost efficiencies across the bank. The ability to take concerted actions to achieve efficiencies while at the same time investing in client-focused businesses, continuing to grow our assets under management and winning market share, is confirmation of the strength of our business model.
"We have adapted early to the new regulatory landscape, we are taking action to adjust the cost base of our business, and our platform will provide us with substantial upside potential when economic and market conditions improve."
YOY YOY
Summary income statement Q2 Change 6 Mths Change
CHFm % CHFm %
Interest and dividend income 7,082 -12 12,534 -10
Interest expense -5,705 -17 -9,404 -12
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Net interest income 1,377 15 3,130 -1
Commissions and fees 3,463 -3 7,134 2
Trading revenues 1,116 -69 3,127 -56
Other revenues 936 – 1,657 >
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Net revenues 6,892 -19 15,048 -14
Provision for credit losses 13 -35 6 –
Compensation and benefits 3,096 -22 7,125 -10
General and administrative expenses 1,652 -20 3,284 -12
Commission expenses 491 -14 1,027 -6
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Total other operating expenses 2,143 -19 4,311 -11
Total operating expenses 5,239 -21 11,436 -10
Income from continuing operations 1,640 -14 3,606 -26
Income tax expense 271 45 736 -28
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Income from continuing operations 1,369 -20 2,870 -26
Net Income from discontinued operations 0 - - -
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Net income 1,369 -20 2,870 -25
Noncontrolling interests 601 366 963 404
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Net income attributable to shareholders 768 -52 1,907 -48