Credit Suisse ended the quarter with a profit of 12.8 billion francs thanks to the write-down of bonds
[ad_1]
Credit Suisse managed to break a series of unprofitable quarters, having received a net profit of 12.8 billion francs ($14.1 billion) in the first three months of this year (.pdf). For comparison, in the previous quarter, the bank suffered a loss of 1.4 billion francs, and a year earlier – 273 billion francs.
However, such an outstanding result for the bank, which the Swiss authorities had to urgently rescue, became possible only thanks to the write-off of debt obligations. As part of deals between UBS and Credit Suisse, brokered by the Swiss authorities, the value of all AT1 bonds issued by Credit Suisse, about 15 billion Swiss francs, was written off. Excluding these write-offs, Credit Suisse suffered a quarterly net loss of 1.3 billion francs, while its revenue fell 40% to 2.7 billion francs.
The bank’s problems affected the behavior of customers. The net outflow of funds from Credit Suisse accounts amounted to 61.2 million francs in the first quarter of the year and 110.5 million francs in the fourth quarter of last year. And the total amount of funds managed by Credit Suisse fell by almost 20% over the year, from 1.55 billion to 1.25 billion francs.
[ad_2]
Source link