Swiss banking group Credit Suisse has said that its Q1 2020 profit has improved so far in spite of the turbulent market conditions triggered by the COVID-19 pandemic.
The firm revealed that its return on tangible equity exceeds 10% for the first two months of 2020.
Its pre-tax income during these two months is said to surpass the CHF1.06bn mark, which was registered in the three-month period ended March 2019.
Private banking revenues in Q1 so far have increased from a year ago. The firm attributed the rise to higher transaction revenues.
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Sales and trading revenues so far in Q1 are also “significantly higher” than the previous year, noted the firm.
Credit Suisse believes that the strengthening of its capital base, focus on wealth management as well as taking a disciplined approach to costs and resources are some of the contributing factors driving its performance.
However, the firm is uncertain about its future performance as COVID-19 continues to spread across more regions.
Credit Suisse said: “Together with the benefit of the cumulative growth in our stable deposit base and of our lower exposures compared to previous periods in areas such as leveraged finance and the Oil & Gas sector, this has substantially increased our resilience and preparedness for the impact of the spread of COVID-19 and the consequent market and economic volatility.
“The impact of the pandemic on our financial results going forward remains difficult to assess at this stage and we continue to monitor our credit exposures prudently in light of these conditions.”
So far, COVID-19 has resulted in the deaths of 8,809 people. The number of confirmed cases stands at over 218,000.
Earlier this year, Investec scrapped its plan to sell a 10% stake in its asset management business NinetyOne due to the volatility caused by COVID-19.