Credit Suisse reports third straight annual loss after US tax writedowns

FAN Editor

Credit Suisse posted its third consecutive annual loss on Tuesday, highlighting writedowns in the fourth quarter of 2017 due to the overhaul of the U.S. tax system.

It reported a net loss of 983 million Swiss francs ($1.05 billion) for the year and said that it paid 2.74 billion Swiss francs in income tax expenses, primarily related to the re-assessment of deferred taxes resulting from the U.S. tax changes.

Overall, the results came in above market expectations, with Reuters analysts estimating a full-year net loss of 1.1 billion Swiss francs. Tidjane Thiam, chief executive of Credit Suisse, said 2017 was a “crucial year” of delivery in its three-year restructuring plan.

He added in a statement that the bank managed to show profitable growth and that every division increased its return on capital, with particular momentum in its wealth management business. The latter saw an increase of 13 percent year-on-year for its assets under management.

Looking at 2018, Credit Suisse said that its market-dependent activities are subject to a number of uncertainties, including changes to interest rates across the world, and it was adopting a “cautious short-term outlook” based on the recent market volatility.

“In the first six weeks of 2018, we have seen a significant pick-up in market volatility, which on the one hand had a positive impact on our secondary activities, and on the other hand, negatively impacted our primary calendar as clients wait for calmer markets in order to transact,” the bank said in a statement.

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