Swiss banking giant Credit Suisse has recorded a net loss attributable to shareholders of CHF700 million (US$779 million) in the second quarter of 2014, compared with net income on the same basis of CHF1.045 billion in the year ago after being fined US$2.6 billion for helping American clients evade taxes.
The group’s net revenues declined to CHF6.463 billion from CHF6.952 billion in the second quarter of 2013.
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Commenting on the results, Credit Suisse CEO Brady Dougan said: "With the final settlement of all outstanding US cross-border matters as announced in May, we brought to a close the most significant and longstanding litigation issue for Credit Suisse. I want to reiterate that we deeply regret the past misconduct that led to this settlement and that we take full responsibility for it.
"We are executing our capital measures and are on track to improve our look-through CET 1 ratio to above 10 per cent by the end of the year. This includes the continued accrual for a cash dividend for 2014. Once we reach 10 per cent, and as we continue to accrete capital towards our 11 per cent long-term target, we intend to return approximately half our earnings to shareholders through our annual distributions," he added.
The Swiss bank also announced that it would quit commodities trading, as it continues to overhaul its investment bank to get back to double-digit capital returns from its remaining activities.
Private Banking & Wealth Management
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By GlobalDataDuring the quarter, the bank’s Private Banking & Wealth Management arm reported a loss before taxes of CHF749 million and net revenues of CHF 3.04 billion.
In its strategic businesses, the unit reported income before taxes of CHF882 million and net revenues of CHF2.93 billion. Compared to the second quarter of 2013, income before taxes in strategic businesses decreased 13%, mainly driven by lower transaction- and performance-based revenues and lower net interest income, partially offset by lower operating expenses.
In its non-strategic businesses, Private Banking & Wealth Management reported a loss before taxes of CHF 1.6 billion, driven by the litigation settlement charge of CHF1.62 billion relating to the final settlement of all outstanding US cross-border matters.
In the second quarter of 2014, assets under management for the division were CHF 1.33 trillion and the division attracted net new assets of CHF10.1 billion.
