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July 30, 2020

Rises in pre-tax income for Credit Suisse in Q2 2020

By Patrick Brusnahan

Credit Suisse saw pre-tax income for Q2 2020 reach CHF1.6bn ($1.75bn), a 19% rise year-on-year.

The net income for the quarter attributable to shareholders was CHF1.2bn, up 24% year-on-year. Net revenue was CHF6.2bn, an 11% increase from the same time last year.

Furthermore, H1 2020 pre-tax income was CHF2.8bn, a 16% rise compared to same period in 2019. The net income attributable to shareholders was CHF2.5bn, up 47% and the bank states this is the highest in a decade.

Credit Suisse assets under management (AuM) were CHF1.4trn at the end of Q2 2020. Net new assets totalled CHF9.8bn, up from the CHF5.8bn in Q1 2020. Total net new assets for the half-year were CHF15.6bn.

The private banking arm of Credit Suisse saw net revenues decline by 3% year-on-year for Q2 2020. This was attributed to lower recurring revenues and lower net interest income. However, for H1 2020, net revenues were up 4% year-on-year.

Comment on Credit Suisse and Q2 2020

Urs Rohner, chairman of the board of directors of Credit Suisse Group, said: “Thanks to our proven strategy, solid capital position and an agile and well-executed crisis response, Credit Suisse has been able to effectively address the challenges of the COVID-19 pandemic from a position of strength and deliver a very good 1H20 result. In light of the strong 1H20 performance, the Board of Directors expects to distribute the second half of the full dividend amount of CHF 0.2776 gross per share as originally proposed to shareholders for the financial year 2019, subject to approval by shareholders at an Extraordinary General Meeting (EGM) to be held on November 27, 2020, and subject to market and economic conditions.”

Thomas Gottstein, Chief Executive Officer of Credit Suisse Group AG, added: “In a continued volatile market environment, we delivered a strong performance. Despite persistent challenges caused by COVID-19, our employees again showed outstanding commitment and dedication.

“With an RoTE of 11.0% for the second quarter and 12.0% for the first six months 2020, we delivered on our pre-COVID-19 ambition to achieve an RoTE of approximately 10% for 2020, confirming the resilience of our integrated business model as a leading wealth manager with strong global investment banking capabilities.

“Amid the turbulent market environment, we were also able to improve our CET1 ratio in the second quarter to 12.5%. Having achieved strong results in the first half of the year, we would like to take this opportunity to reaffirm our strategy and to announce several structural changes, which we will implement going forward. The changes should allow us to extract significant potential to improve effectiveness and efficiency, navigate the current environment with the necessary far-sightedness, and to unlock additional growth potential in the future to the benefit of our clients.”

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