And I'm not going to give detailed profitability numbers at this point. I mean I guess I can imagine it must be quite unsettling across your -- a number of divisions of your bank. We're therefore looking to accelerate our digital transformation program, including a further simplification of our front-to-back processes, reduction of manual data handling and duplication and increased use of scalable cloud-based infrastructure. 0000041074 00000 n Is that a fair way of looking at it? Additionally, we are targeting an absolute cost base for the group of below CHF 15.5 billion in the medium term, supported by a broader cost efficiency and digital transformation. It's not stable in any sense of the word. I mean I think it does seem prudent to give a range for the guidance for capital. 5:32p Oracle misses on earnings results and forecast as strong dollar takes . The next question comes from the line of Kian Abouhossein with JPMorgan. 0000039358 00000 n 0000004264 00000 n | December 3, 2022 [Indiscernible] staff morale and attrition is concerned, clear that changes in strategic directions, et cetera always create a certain un-security, but on the other hand, from all my conversations I've had and that Ulrich will continue to have going forward, there is a broad-based recognition and support that we have to take some further actions. And thank you for, yes, your kind words. The next question comes from the line of Anke Reingen with Royal Bank of Canada. Revenues plummeted 29% to CHF3.6bn from CHF5.1bn in the same quarter of 2021. Before we begin, let me remind you of the important cautionary statements on Slides 2 and 3, including in relation to forward-looking statements, non-GAAP financial measures and Basel III disclosures. And thank you all for joining our second quarter 2022 results presentation. And it clearly has a -- and clearly, Chris, as I said in my prepared remarks, there does have to be a much increased chance of a significant recession at some point in the next 12 months. So let me just give some more detail, please, into the impact of the significant upward move on interest rates both in the short term and through the forward curve. 0000039608 00000 n That is why the Board of Director has decided to take decisive actions to reposition our bank and to strengthen the performance, the reputation and credibility of the bank. And I think you're aware that similar structures exist with -- in Europe with the ECB, for example. This program is extensive and far reaching. I think it seems prudent to give a range of 13% to 14%. July 27, 2022 Credit Suisse posts $1.6bn loss in Q2; names new CEO Credit Suisse has posted a net loss of $1.7bn (CHF1.593bn) in Q2 2022 against a profit of CHF253m a year ago, marking its third straight quarterly loss. 0000041655 00000 n And it's a very strong business that's got excellent leadership and it's got a very good history of entrepreneurship and innovation. I don't know, Thomas, if you want to comment. Campbell reported a strong EPS in Q1 . My name is Rob, and I will be your conference operator today. I think your point about restructuring costs. I will now turn the conference over to Kinner Lakhani, Head of Investor Relations and Group Strategy and Development. Credit Suisse is one of the world's leading financial services providers. Quarterly results: Fiscal Period : December: 2020 Q3: 2020 Q4: 2021 Q1: 2021 Q2: 2021 Q3: 2021 Q4: 2022 Q1: 2022 Q2: 2022 Q3: 2022 Q4: Sales M CHF: Released Forecast Spread: 5 198 5 405-3,8%: 5 221 5 . I'd like to go through now the key financials and give some more details on our performance at the group and the divisional levels. So we like this business, but there has to be a limit to how much capital you can actually organize. And happy birthday, Kinner. Credit Suisse expects loss in Q2. And maybe in more detail, what are the kind of theoretical options, particularly with that capital option for the securitized product platform? So I think that's a protocol which, I would say, I've followed since 2007; and I think it's the prudent way to think about it. I'm not really going to add to it beyond that. The wealth manager and investment bank are also looking to cut technology costs while keeping a focus on wealthy customers. It's not just done at the end of a quarter. Thank you in particular to Thomas. [Operator Instructions]. Our Asset Management division was impacted by the challenging market environment, with net asset outflows of CHF 6.1 billion driven by outflows across both traditional and alternative investments, only partially offset by inflows from investments and partnerships. If I talk about the program we did last year, to give you some idea: Typically speaking, those were 3-year instruments; and they vest roughly 1/3, 1/3, 1/3 basically. 0000007469 00000 n This is a formidable institution with world-class client franchises in the markets in which we operate. %PDF-1.6 % ZURICH, July 14 (Reuters) - Swiss bank Credit Suisse (CSGN.S) sees its future as an independent entity, Chairman Axel Lehmann told the Financial Times, amid speculation that the beleaguered group . I realize we'll need to wait to hear the conclusions, but I wanted to hear about how that review is being framed. You may all disconnect. Is this happening to you frequently? Taken as a whole, net revenues for the division was 55% lower year-on-year at $1.15 billion. It did not give an estimate of the second-quarter loss. The savings are what they are, but I guess it's an opportunity. Look. I think -- on the second point, I think that's just completing the CET1 [walk] basically. Next slide, please. So I just wondered if you could talk us through the moving parts and what helped capital in the quarter. I think, just quickly on the Russian-related outflows. [Andrew asked that] question, but there are 2 separate things. It will be deep, far reaching, but it will -- done with prudent, in a reasonable way. Credit Suisse's Strategic Overhaul Takes Spotlight at 3Q Results -- Earnings Review Oct. 28, 2022 at 10:31 a.m. I'm pleased to note, though, that the Asia Pacific region, having delivered positive inflows in the first quarter, has now continued this momentum in the second quarter. Our risk-weighted assets increased by CHF 1 billion to CHF 274 billion. L>[qI)w/)"zd'BqlDV,Zcq1 I wanted to follow up, please, with one question on the strategic direction. ET Contents: Prepared Remarks Questions and. Nonetheless, this is clearly disappointing and does not reflect, as Axel also said, the strength and potential of our world-class franchise. Can we turn to the next slide, please? Those are clearly critical, but on the basis of the current structure of the bank, we think a cost target less than CHF 15.5 billion is perfectly achievable. Looking at the share prices of the two big Swiss banks, UBS, whose results are due out on Tuesday, has risen just . The next question comes from the line of Alastair Ryan from Bank of America. We've achieved an adjusted pretax loss of CHF 442 million for the quarter compared to an adjusted pretax income of CHF 1.31 billion for the same period of last year. I'm also pleased to say that we already achieved our year-end 2022 ambition of releasing more than $3 billion in allocated capital from the Investment Bank by the end of this quarter. Thank you, Thomas. We are moving to implementation quickly on this point, but we are only going to provide further details on the new SEC U.S. GAAP restructuring program once we get to the end of the third quarter. 2022 - 2019. For a detailed discussion of our results, we refer you to the Credit Suisse second quarter earnings release published this morning. Or does that really ultimately depend on the measures you'll take and probably also the impact or expected impact on parent bank given that restructurings often result in impairments there? Shares slid 7.3% in early trading as analysts pointed to the particular impact of market conditions on a bank in restructuring mode and concerns that cost savings will not generate future earnings growth. The 9% fall in recurring management fees was primarily driven by the 9% year-on-year drop in assets under management, which was due to market and FX effects in large amount. Now our provision for credit losses was higher than a year ago [when we weren't able] to release certain nonspecific provisions taken during the early stages of the pandemic, but they're clearly lower than in the first quarter of the year. That is a business that is seeing structural growth, particularly with the growth in private debt. Thomas was fantastic helping us to bring us to the point where we are. Video. Thomas has led the bank through some of its most challenging corporate period; and he has done it with a lot of courage, energy and commitment as well as huge personal integrity. The bank said it now planned to operate at a group-wide Common Equity Tier 1 ratio, its key capital metric, of around 13.5% "in the near term", below its 2024 target for above 14% and its 2021 and first-quarter CET1 ratios of 14.4% and 13.8% respectively. And I think that is the prudent and correct thing to do. If you were to make further cuts or changes to the IB, then would you then be looking at a number below CHF 15.5 billion? Now the range has kind of widened to 13% to 14%, so just would like to understand, I mean, what's driving that increase in, I guess, volatility for the CET1 ratio. Q2. And our reported pretax loss of CHF 1.2 billion was further impacted by major litigation provisions, Allfunds-related losses and restructuring charges, totaling CHF 0.7 billion. The reason I ask is, number one, had you not had 5 billion of IB deleveraging, you would have been 30 basis points lower. Firstly, just on the structured products business, the plans for that. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. Jeremy, one point. "Our results for the second quarter of 2022. Now let me turn now to the Investment Bank. The need for change was clear before the second quarter results, but the disappointing performance has added a sense of urgency, as well conviction, for our actions. That's right, but they are separate things because [one is the] exposure to my shareholders' equity, my deposit strategy, my [replication] strategy. Financial markets entered 2022 dealing with some of the highest inflation rates in the generation, putting strain on household spending and most financial assets. The next question comes from Daniele Brupbacher from UBS. I think, as you know, the major Swiss banks have been -- have an exemption threshold which is maintained by the Swiss National Bank, which has given us a benefit of around CHF 400 million per year whilst rates were set at minus 75 basis points. And as I say, best wishes for all the work that's underway. With regard to expenses within the Wealth Management division. 0 We are also a leading universal bank in Switzerland with a #1 position in investment banking and in institutional clients and top 2 positions in corporate banking and wealth management. MAr=ZTXeL$".aY(%h&fN Nl"Kh T I think, as we've said, this cost program is an absolute priority for the Board and for the executive management of Credit Suisse. I mean maybe I can start off. This is disappointing, and we will address that step by step over the coming months and quarters. We are perhaps more advanced with this than the other work because we actually started a very extensive benchmarking work in the first quarter. Do you think that's now run its course? As highlighted before, we are taking strategic actions to further strengthen our Wealth Management, Swiss Bank and Asset Management divisions; and to transform our Investment Bank with the aim of achieving a less-complex, capital-light advisory-led and more connected business that further supports the growth of our Wealth Management and Swiss Bank divisions. This is mostly due to the current market conditions, the bank said. And then we can move to Q&A. | 4 Dezember 2022 Well, of course, firstly, Thomas, I would also like to extend my thanks to you for the years we all worked together and wish you all the best for the future as well. One point that I would note is that the benefit that we expect to see from the upward move in the U.S. dollar and euro curves will be partly offset by the move in Swiss franc rates toward 0. 0000042050 00000 n The bank is considering job reductions as part of the cost cuts, Bloomberg reported on Wednesday. This was the bank's third warning in 2022: in January, Credit Suisse warned it would report a loss for the final quarter of 2021 on the back of a slowdown in revenues at its investment bank. There's a lot of appetite for those types of products. And have a good day. and thank you for joining Credit Suisse Group's second quarter 2022 results conference call for analysts and . Is this happening to you frequently? 0000050638 00000 n I will share some personal remarks before the Q&A at the end. At the investment banking arm in particular, Credit Suisse said that on an adjusted basis, this division posted a "significant" pre-tax loss of $860 . In this context, it is important to remember that our franchise mix, which particularly benefited us in a year like 2021, has been much less supportive in the recent environment given our much more limited exposure to macro and rates as well as commodities. Published Jul 25, 2022 08:33AM EDT Swiss banking major Credit Suisse ( CS) continues to see a bumpy 2022. And then secondly, on the securitized products business. Overall adjusted pretax income was 75% lower year-on-year at CHF 31 million. 0000003560 00000 n That's transformational in terms of what it can actually drive us in terms of scale benefits, but I think -- beyond that, I think it brings back centralized IT control, which is the right thing to do, and the ability to actually drive our IT much more effectively, so as you can guess, I'm very supportive about this. Best wishes to you, Thomas. And maybe -- this is Axel Lehmann. He's been doing a full review of our legal case. Let me briefly touch on our ongoing digital transformation, led by our Chief Technology and Operations Officer, Joanne Hannaford, which we expect will open up new opportunities and drive and accelerate change across the entire bank. And that does include significant incremental investments relating to the implementation of the group strategy as well as increased remediation spend on compliance and infrastructure, which totaled about CHF 331 million in the first half of the year. Okay. company is expected to post a net loss per share of $0.02, the default of Archegos Capital (a loss of $5.5 billion), Do Not Sell My Personal Information (CA Residents Only). Strengthening risk management and risk culture as well as addressing legacy issues remain an absolute priority. I think you've given the RWAs and leverage exposure but nothing on the P&L metrics. I would like to close with some personal remarks. It includes the supply chain fund read-across. In the year-ago period, it had posted earnings of $0.11 per share, which was well short of the expected $0.24 figure. Just to take the 2 in turn: I mean I think -- in terms of compensation costs, Chris, I think you know that last year, as a consequence of our response particularly to Archegos, we did go for a much higher level of deferral. And credit to you for managing the bank through challenging times which have arisen through no fault of your own. And overall, therefore, net revenues for the Wealth Management division declined by 7% to CHF 1.44 billion. Credit Suisse Group (CS-3.19%) Q2 2022 Earnings Call Jul 27, 2022, 2:15 a.m. I think you know we actually have outsourced our procurement function. Next slide, please. And if you do have any further questions, feel free to contact the IR team. We're taking those in turn. We continue to invest in relationship managers, in technology and in risk and compliance. UBS's asset management unit has registered $12bn (11.75bn) in outflows in the second quarter of 2022, driven mainly by the equity side of the business. xref The return on regulatory capital was 12%. 0000050541 00000 n We currently publish thousands of quarterly earnings calls per quarter on our site and are continuing to grow and expand our coverage. And we have reasons to believe that there is tremendous interest in our world-class securitized products business from third-party capital providers, so I'm very confident that this is a business that attracts a lot of interests. . The more cautious sentiments amongst clients, which adversely affected brokerage and structured product fees, contributed to an 11% reduction in transaction-based revenues. The next question comes from the line of Chris Hallam with Goldman Sachs. And our provisioning does remain at consistently low levels at less than 5 basis points of our net loan total. Credit Suisse (analyst speaking on CNBC in Asai) says. We maintained a resilient capital base with our CET1 ratio at 13.5%, in line with our guidance. We also feel, from a senior executive, also from a Board perspective, encouraged by the progress on strategy implementation and execution. Mostly it's FX [there]. I assume that's not included in the potential benefit from higher rates. Well, look. Three months later, it announced that it expected a first-quarter loss due to an increase in legal provisions. read more. #suissegroup #transcript #2022earnings #security #technology. [I mean just note] that we saw that in terms of those numbers. And we do that not shying away to looking to some businesses that are great businesses, like the SP business, but ultimately not too much connected with the rest of the group. We repurchased USD 1.6bn of shares in 2Q22 and USD 3.3bn in the first half of the year, and we expect to repurchase a total of around USD 5bn of shares during 2022, as planned. I can probably take the second one, first, which I think, Jeremy -- and I think you probably just need to look at FX moves because there was a notable strengthening in the U.S. dollar in the second quarter. Now if we just focus on the adjusted loss of CHF 442 million. So on to my questions: First of all, how do you think about the stability of the CET1 ratio at 13.5%? And first of all, just to echo everybody's comments, Thomas: I certainly appreciated both your thoughts and perspectives in recent months. All quotes delayed a minimum of 15 minutes. Presenter SpeechNate Melihercik Okay. 130 0 obj Let me spend the next couple of minutes elaborating a little bit more in detail before handing over to Thomas and David for their respective presentation. Thank you, Thomas. I think, in terms of the capital guidance, look: I think we're operating in a volatile environment. We give you an example with SP that is somewhat delivered -- guiding also our thinking. We'll look to build on this. Welcome, everyone. Credit Suisse Group (NYSE: CS) Q2 2022 Earnings Call Jul 27, 2022, 2:15 a.m. . Good morning and good afternoon. Create your Watchlist to save your favorite quotes on Nasdaq.com. 0000004376 00000 n What we show here is the impact that our adjusting items had on our underlying performance both in the second quarter and in the context of the first half. 53 LR Credit Suisse reports net revenues of CHF 3.6 bn and pre-tax loss of CHF 1.2 bn along with a CET1 ratio of 13.5% in 2Q22 "Our results for the second quarter of 2022 are disappointing, especially in the Investment Bank, and were also impacted by higher litigation That's how they work. Look. Trust me. Type a symbol or company name. Credit Suisse Group raised their target price on Cardinal Health from $64.00 to $79.00 and gave the stock a "neutral" rating in a research report on Tuesday, November 22nd. Releases Financial Data Supplements Reports Presentations Webcasts; Q3. The next question comes from the line of Andrew Lim with Societe General. I don't want to speculate at that point about anything. I think you've seen the radical move in interest rates, so far. Transcript Equity Call. Brutally, we're only 3 weeks into the third quarter. Please. His absolute dedication and commitment to the bank over the past 2 decades are beyond commendable. As I said already, we saw net asset outflows of CHF 1.4 billion in the division, with net outflows from EMEA and Switzerland partly offset by net inflows in APAC and the Americas. We will do the right steps. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. And with this, I would like to hand over to David, and I will come back after his presentation. And our leverage ratio is equally strong in terms of that, so I think the bank is well funded in terms of that. hb```b``sa`c`e`@ ;m]cr7EO0}M]- W\RgK=VTDixI'f7,D~qZ \yx$Wej2]qmk2Ye Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. 0000039280 00000 n Again my thanks as well, Thomas, for all the help that you provided. Ralph Hamers, UBS's group chief executive . ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good morning.. Let me remind you that our second quarter financial report and accompanying financial statements for the period will be published on or around July 29. I think that's not appropriate. We're talking about sustainable improvements in efficiency that we need to achieve that go far beyond compensation changes. [Operator Instructions] Alice, it would be great if we could open the line, please. CREDIT SUISSE GROUP AG company earnings calendar and analyst expectations - Upcoming and past events | Swiss Exchange: CSGN | Swiss Exchange . Next page, please. And then my second question is on retention packages that have hit the headlines lately. Global markets, where frenzied trading powered a 24 per cent jump in group net profit, is to be merged with investment banking in a shift away from the structure introduced by previous . Credit Suisse AG owned approximately 0.14% of Avery Dennison worth $18,781,000 at the end of the most recent quarter. TipRanks' multi-award winning platform ranks financial experts based on measured performance and the accuracy of their predictions so investors know who to trust when making investment decisions. And taking alongside our broader cost efficiency initiatives, we expect this digital transformation program to play a critical part in reducing our adjusting operating expenses to our new target to be below CHF 15.5 billion in the medium term. You talk about seeking third-party capital. This section provides shareholders, analysts, the media and other interested parties with relevant information, enabling a transparent assessment of the company's value. And in terms of net new assets, we did see outflows in the quarter mainly driven by outflows of CHF 1.2 billion from institutional clients and CHF 400 million from our private client business, but I'd just remind you that, for the first half of the year, the division has attracted CHF 4.4 billion of net new assets, again primarily from institutional clients. The company is expected to post a net loss per share of $0.02 for the period. Results. And we have identified cost reduction potential in every single division and in every single corporate function, so this will be broad-based. And I think it does give us potential, so I'm not decrying the cost pressures we see in the system, but I think we can, I can see 2 large levers there. View our calendar for important upcoming events. 0000040166 00000 n Seeking Alpha's transcripts team is responsible for the development of all of our transcript-related projects. Now let's assume that is not going to happen. That was an appropriate decision we made in conjunction with what -- which we made. Quarterly results - Credit Suisse Third quarter 2022 financial results and strategy update On October 27, 2022, Credit Suisse Group presents its third quarter 2022 financial results and strategy update. 0000041315 00000 n Thanks, SA Transcripts Team. Zurich, July 27, 2022 Page 1 Ad hoc announcement pursuant to Art. I think -- I think we've been clear. 0000040372 00000 n The Board of Director is grateful to Thomas for the leadership he has provided during the global COVID-19 pandemic as well as in the aftermath of the 2 incidents in 2021. I think, on the second question, just on SP. And then maybe, Axel, he will take the options for the Investment Bank. Welcome and thank you for joining Credit Suisse Group's Second Quarter 2022 Results Conference Call for Analysts and Investors. Based both on personal and health-related considerations, I concluded that now would be the right time to step aside, clearing the way for a new leadership to fully embrace a series of game-changing initiatives announced this morning, all of which I wholeheartedly support. The Swiss banks road continues to remain bumpy. 0000003532 00000 n Now the majority of this, as we said back in June, will flow through the Wealth Management division, as it has the greatest exposure to U.S. dollars, but we'd also expect to see some benefit in this division from the movement in euro rates. Switzerland's second . The industry leader for online information for tax, accounting and finance professionals. Thank you very much. I think the cost reduction program is absolute priority for the Board and for executive management. Back to Kinner's closing comments. In short, the priority of the strategic review will be to enhance our positions in Wealth Management, the Swiss Bank and Asset Management while considering options for fundamentally reshaping the Investment Bank into a highly competitive banking and more sustainable markets business. There is a lot of frustration around allocated costs, et cetera, so the cost initiatives is broadly supported by everybody. I'm -- I think the whole Russian-Ukrainian situation cannot be described as stable. These primarily relate to 2 matters: first, to our investigations into record-keeping requirements relating to business communications sent over unapproved devices; and second, in respect of a previously disclosed legacy legal matter. Now just against this weak picture, I would note that we did see higher GTS revenues due to strong equity derivatives and macro trading activity resulting from the increased market volatility, albeit this was partly offset by lower emerging markets trading and financing activity. And when I look at the much more detailed work that we've done across the rest of the bank, I can see how we can drive towards the CHF 1 billion to CHF 1.5 billion total for our current perimeter. It's described more in terms of efficiencies rather than a change in scope, so I just wondered whether you're effectively ruling out significant changes in the shape and the scope of the group as you go into that review. 0000050502 00000 n We have a very constructive dialogue with all 3 regulators. It becomes a little bit forward looking there afterwards. CS fell short of the Street's expectations in the past two quarters, and its second-quarter numbers on July 27 are keenly anticipated. So there's a limit to what I can actually do, Stefan, in terms of DTA, I'm afraid. 0000038941 00000 n However, we saw an increase in advisory revenues of 37% from a year earlier. 0000041008 00000 n I think, if I'm not mistaken just looking at the quarterly report, the number you gave for the range of [reasonably possible losses] has gone slightly higher. Good morning. That increase is -- reflects both increased cash accruals for compensation due to normalized deferral levels; as well as higher technology, risk and compliance costs; and additional spending on advertising and marketing campaigns. read more. Clearly we need to do our remediation programs. We are obviously always also in contact with FINMA, but this is very consistent with the spirit there. | 3 december 2022 So Axel, are we supposed to -- are we kind of -- can we consider even a further shrinkage of the Investment Bank that was communicated last time around with the strategy review, particularly as you talk about the kind of the capital lightness of the model -- of your kind of new model going forward? Just first, on compensation costs and head count. Just given the first question, I guess, had been partially answered before, just maybe one follow-up just checking in terms of the commentary about the CHF 15.5 billion and that being within the current perimeter. Third, we saw mark-to-market losses in APAC financing of CHF 21 million. I think -- but it does -- it has -- this is a sustainably profitable business which does cover a very broad range of asset financing. And maybe on costs, and that's particularly on wealth -- and I'm going to kind of concentrate on what's happening kind of currently. The performance of our Wealth Management division reflected higher net interest income benefiting from rising interest rates, which was more than offset by lower recurring commissions and fees and transaction revenues impacted by the adverse market environment. Our accounting policy is to mark those commitments [to market when] -- as we actually see them. I am Alice, the Chorus Call operator. Again I also would like to thank Thomas for dealing with issues not caused by his management and operation but by previous management within the group. I think I did answer a similar question on securitized products before actually, Amit. On the FINMA, capital side, clearly, yes, as it was said by David, the 13.5% is a very solid capital base. 0000040232 00000 n Just in terms of litigation, I mean, I think your comments are absolutely correct. Provisions for credit losses in the quarter were CHF 64 million compared to a release last year when we were able to write back some of our nonspecific provisions that were taken during the COVID pandemic. As announced earlier today, the Board of Director accepted the resignation of Thomas Gottstein. Blog. Copy and paste multiple symbols separated by spaces. And I just wonder how you sort of like try to manage that situation and not, yes, impacting staff morale. 0000009430 00000 n I personally value him as a strategic thinker with a solution-oriented approach and a clear focus on execution and delivery. It's not just a forward curve projection, but I did want also to basically disclose that, clearly given the moving credit spreads across the market, across the banks and for Credit Suisse, for that matter, it seemed prudent to basically guide to the adverse impact to funding costs as a consequence, both for those moves and, of course, the increase in the AT1 guidance which I've given this morning. Please disable your ad-blocker and refresh. 0000041558 00000 n The other is the increase in funding costs, which comes largely from our AT1 issuance plan. It's not. So I mean, taking a 40 billion [TNAV], that would probably imply like a net profit of 4 billion or revenues north of 20 billion, which you probably think could be a sustainable base given the current profile. Presentation Operator MessageOperator Ladies and gentlemen, welcome to the Schindler Half Year Results 2022 Conference Call and Live Webcast. You might also want to look at [OCI] moves, although they don't have the same capital relevance but -- just to complete it. This was 40 basis points lower quarter-on-quarter at 11.4%, driven both by the net losses but also by adverse FX impacts because we cannot fully neutralize both parent and group through FX moves and particularly the strength in the U.S. dollar. I will now hand over to Axel Lehmann, our Group Chairman, who will elaborate on the announcements from this morning; followed by Group CEO Thomas Gottstein; and our Group CFO, David Mathers, who will run through the numbers. We are assessing a further transformation of our Investment Bank into a capital-light advisory-led banking business and a more focused and connected markets business that complements the growth of the Wealth Management and Swiss Bank franchises. Pinning an anticipated group-wide loss on its investment bank, the lender said the Russia-Ukraine war and significant monetary tightening had led to weak customer flows and clients reducing their borrowings so far in the second quarter, particularly in the Asia-Pacific region. 0000002701 00000 n It includes FRTB and other projects, so I think we are very well organized now. And I think she gave a very good summary of what can be achieved there in terms of the efficiency of our IT programs, the integration of IT and what [she's] actually bringing to this job. And I think that's the time to do the -- I'm not sure I would make the assumption you make about 100%, Kian. Since returning to Credit Suisse, he has rebuilt the Asset Management business with a new strategic direction and a high-performing team. Clearly the broader economic and geopolitical environment remained difficult over the first half of the year. Good morning, everyone. And we also had a small goodwill impairment relating to the transfer in the second quarter of a portion of AFG to the Investment Bank, which cost us [$23 million]. Let me now turn to the different business divisions, which we report as usual on an adjusted basis unless stated otherwise. You're right. And I mean, at this point in time, are you ready and able to exclude a capital increase to -- if you go into this strategic review? Announcing its third consecutive quarterly profit warning, the lender said it now aims to bring cost savings forward, speeding up measures introduced as part of its reorganisation in November targeting 1.0 billion-1.5 billion Swiss francs ($1.03 billion-$1.54 billion) in structural cost savings annually by 2024. Q2 2022 Earnings Update: Company Performance: United States: Financial Services : Good morning. As we guided at the beginning of June, our CET1 capital ratio at the end of the second quarter was 30 basis points lower than at the end of the first quarter at 13.5%. And I think, two, basically we will obviously need to deliver gross savings in excess of that net target in order to allow for our investment plan and [to a degree] to offset the inflationary factors you're referring to, Magdalena. [Operator Instructions] The conference is recorded. Now if we look at the reconciliation for the first half, you can see that the reported pretax loss of CHF 1.6 billion translates into an adjusted pretax loss of CHF 1.42 million -- CHF 142 million. This was due to the investments that we're making in business growth, including in China; as well as higher group-wide technology, risk and compliance costs. Results in / end of % change in / end of % change And good morning to everybody. I think, as you can see from the slide, this was most notable in capital markets which saw a 96% decline year-on-year to $38 million, but you should note that this figure does include the markdowns of $245 million on our leveraged finance portfolio which I referred earlier. So if we had FX rates similar to where they were at the end of the first quarter, it would have been probably closer to [11.6 or 11.7]. The company is expected to post a net loss per share of $0.02 for the period. Today, we announced a series of important changes, most notably a new CEO and a repositioned strategy. [Operator Instructions]. We are disappointed, though, at the level of net asset outflows which totaled CHF 6.1 billion in the second quarter. Market cautious on Credit Suisse's Q2 results as Archegos, Greensill woes linger. Markets By David Moadel Oct 27. So I guess, brutally, Magdalena, we're paying too much. I'm not going to comment on that, but there clearly is excess capital in CSSEL because it is now a nonmaterial legal entity. The development and implementation of the new strategy will be overseen by the full Board of Directors and supported by a [Board-led ad hoc] investment bank strategy committee, with Michael Klein as Chair; and also including Mirko Bianchi, Richard Meddings and Blythe Masters. The next question comes from the line of Stefan Stalmann with Autonomous Research. And then my second question is more a numbers question for David, if you could just walk us through -- you talked about the RWA movements, but I wondered if you could talk us through the capital movements because capital reduced quite a lot less than the loss for the quarter. TipRanks->. I just wonder how you manage your staff through the announced changes. The indices have narrowed, but just history from the past basically says you can't always judge specific trades by moves in indices basically. Our Investment Bank performance was impacted by substantially lower ECM and leveraged finance market activity as well as leveraged finance mark-to-market losses. The Group's diversified and integrated model and its ability to accompany clients and the economy in a comprehensive way continued to drive strong growth in revenues and results in the third quarter 2022. The release of certain provisions relating to the supply chain finance funds matter was partly offset by higher technology, risk and compliance costs; as well as increased cash accruals for compensation due to normalized deferral levels. I just would guide you against from -- kind of assuming that this is an exit from securitized products. Slide 7, please. Transcript : Credit Suisse Group AG, Q2 2022 Earnings Call, Jul 27, 2022. Could you explain in detail how these are expensed through the P&L? I just had a question on Slide 18, about the interest rate sensitivity, the higher funding costs comment. Credit Suisse analyst Robert Moskow reiterated a Neutral rating on the shares of Campbell Soup Company (NYSE: CPB) and raised the price target from $52 to $54. Citigroup, Bank of America, JPMorgan, Barclays, BNP Paribas, UBS, Credit Suisse 3 Q IFRS loans: "'!bn. And I think, therefore, it is the right thing to do, to actually consider third-party capital for this to allow us to basically maximize the potential of this franchise and, I think, without basically distorting our overall asset allocation. 0000039335 00000 n We don't think CPI is an issue in China, in fact, it's going to be remaining steady within this range of 1% to 3% in the foreseeable . The next issue will be published on September 13, 2022. Credit Suisse. Clearly this will constitute a new cost program, under the SEC rules, but with associated guidance we provided around the expected incremental restructuring costs. <>stream Fixed Income Investor Call . We also saw a strong performance in advisory, where a significant deal closing grow revenues -- drove revenues 37% higher to $190 million. Just a brief comment on the Swiss CET1 ratio for Credit Suisse AG, the parent. Corporate calendar. We've run it continuously on that basis. So it's a time-weighted basis, so it's -- if they were awarded for 6 months, it would be 1/6, 1/3, 1/3, 1/6, depending on when they're actually awarded. 19, 2022, 02:25 PM. Just looking forward, as we've said in our media release today, we'd expect the CET1 ratio to be in the range of 13% to 14% for the balance of the year. Presentation Operator MessageOperator Good day, ladies and gentlemen. With European banks releasing their Q2 results this week, Credit Suisse follows the trend of disappointing results from the quarter, which has seen investment banking revenues collapse on both sides of the bond. 0000040450 00000 n 27, 2022 8:08 PM ET Credit Suisse Group AG (CS), CSGKF SA Transcripts 132.61K Follower s Follow The. As of the end of 2Q22, our CET1 ratio was 13.5%. I will take you through the walk in more detail on the next slide, but this reported figure includes a further valuation loss of CHF 168 million on our -- on the mark-to-market moves in the publicly listed Allfunds Group as well as major litigation provisions totaling CHF 434 million. Type a symbol or company name. I'm interested to know if you think there's anything more to go. As we hedge forward about 65% of our equity into U.S. dollars, you'll see an appreciation in the capital base. As I mentioned before, though, we do expect the net interest income for the third quarter will decrease sequentially due to the Swiss National Bank's decision to increase interest rates from minus 75 basis points to minus 25 basis points. "Given the economic and market environment, we are accelerating our cost initiatives across the group with the aim of maximizing savings from 2023 onwards," it said in a statement, adding further details would be provided at an investor update on June 28. And we are looking and enabling parts of the business to grow and to prosper, and the details will be disclosed with the Q3 results, so bear with me. What I would say is this is a business that Credit Suisse has a long track record in. Now with that, let me hand back to Thomas. I would anticipate that the benefit to Credit Suisse in 2024 will be approximately CHF 1 billion compared to 2021. I am very happy that Ulrich has agreed to take over the baton as Group CEO and lead the Executive Board at this important juncture in time. 0000001456 00000 n CS fell short of the Streets expectations in the past two quarters, and its second-quarter numbers on July 27 are keenly anticipated. I'm not going to go into detailed P&L and cost metrics today. In the last few weeks, I had several discussions with Chairman Axel Lehmann about the future of the bank in the context of the already mentioned challenges and in light of my own situation. In the context of challenging markets, our recurring commissions and fees were lower, reflecting weaker AUM and broadly stable margins, while our transaction-based revenues were impacted by the risk-averse client sentiment. Thank you, Thomas. Credit Suisse Group AG (NYSE: CS) announced its financial results for the year's second quarter on . They were both up year-over-year in the quarter. And Ulrich is now obviously in-charge. Middle East, Russian sanctioned individuals as well, you flagged out. In addition, we also experienced leveraged finance mark-to-market losses of $245 million. Welcome and thank you for joining Credit Suisse Group's Second Quarter 2022 Results Conference Call for Analysts and Investors. These efforts should contribute, together with our broader cost efficiency program, to reducing group adjusted operating expenses to below CHF 15.5 billion in the medium term, as I previously mentioned. The bank has described 2022 as a "transition" year in which it is trying to turn the page on costly scandals that brought a near-total reshuffle of top management and a restructuring seeking to curtail risk-taking, particularly in its investment bank. We have a Board of Directors risk appetite of 13% to 14% for the rest of the year, and that's what we are doing. And we are really looking to set up parts of the Investment Bank also for growth [on] the banking business. And incidentally, just in terms of my, yes, interest rate and treasury management, I do have the ability to actually term out a significant proportion of this to actually lock in that benefit. It has been an absolute privilege and honor to serve Credit Suisse over the past 23 years. And Thomas, very best wishes for the future. At this time, I would like to welcome everyone to the Patterson Companies Second. Clearly it's our origins lie in mortgage securitization, but it's expanded well beyond that into asset finance. And as David said, we think we are just at the beginning here and we see significant opportunities. TipRanks is the most comprehensive data set of sell side analysts and hedge fund managers. When is Credit Suisse Group's earnings announcement? So we are very much focused on this and we are having a lot of support by our direct reports and N-2s across the bank. We are also evaluating strategic options for our market-leading securitized products, which may include attracting third-party capital into this high-return platform and potentially freeing up additional resources for the bank's growth areas. Nonetheless, the average price target of $6.92 indicates a 26.28% potential upside. We have seen an increase in the costs of our capital instruments due to the movement in credit spreads in the course of this year. Now of the CHF 18 million provision that we took in the quarter, about CHF 13 million was in respect of Russia exposure. That's very helpful. I think -- on the first question. And now we go into kind of third and in the fourth quarter and speeding up, speeding up our [overall] transformation. I mean I think, just on the tax charge, it's clearly not desirable that I have to report a tax charge at the same time as we report a group loss, but that does reflect the tax structure of the group and my limited ability to actually achieve deferred tax offsets at this particular time. We expect Credit Suisse to beat the consensus estimates for revenues, while its earnings will . Credit Suisse (NYSE: CS) is scheduled to report its fiscal Q2 2021 results on Thursday, July 29. And anything you can say on [July] given what UBS said yesterday? I know that our disappointing first half results don't reflect the inherent strength and potential of the powerful global Credit Suisse brand, but I am convinced that we are on the right path to restore Credit Suisse to its premium position in global finance. So that's a comment in terms of my issuance plan for '22 and that's all I'd say at this point. Credit Suisse (CS) warned on Wednesday of a likely group-wide second-quarter loss as volatility hits its investment bank, extending a losing streak stretching back to 2021. [Operator Instructions]. I'm not going to prejudge how this year closes out, but I -- it doesn't seem to me like it's going to be as good a year for bonuses in 2022 as it was in 2021 across the industry. Well, perhaps I would take the two questions in order. It's done on a regular basis. Several other institutional investors have also bought and sold shares of AVY . And I'll give more details on that when we report our third quarter earnings at the end of October. We've also taken CHF 100 million of impairments and charges, nonoperational charges, in our Wealth Management business, all of which are reflected in the adjusted pretax loss number. It's just part of our normal treasury management. Ulrich is an experienced transformation leader with excellent judgment and has demonstrated to the Board of Directors that he understands the urgency of the task and the need to build trust across our stakeholder base. I think you gave some balance sheet color in terms of RWA and leverage consumption. We remain focused on improving risk management as well as the risk culture across the group. Credit Suisse said its net income reached 253 million Swiss francs ($278.3 . Credit Suisse showed a net profit of CHF 3.6 billion, a decrease of 29% year-on-year, driven by a decline in investment bank net . I've got 2 questions, 1 still on strategy, another 1 on costs. 0000040638 00000 n Well, look what we said. I think that has indicated significant potential even absent the strategy review. Well, look. Credit Suisse said its second-quarter earnings would also be hit by continued volatility in the market value of the bank's 8.6% holding in Allfunds Group. 0000011124 00000 n I think we've had outflows in -- both in respect of sanctioned clients, which we obviously do treat as a structural change because the money is locked -- and then in terms of non-sanctioned clients, we had about a CHF 1.4 billion outflow. We have a market-leading franchise in securitized products, and while our financing pipeline is robust, revenues were lower than a year earlier in the context of widening credit spreads. Contacts for investors Quicklinks Quarterly Earnings 3Q22 Info Kit 3Q22 Earnings Media Release 3Q22 Earnings Presentation 3Q22 Earnings Release More Annual & Interim Reports And Daniele, thanks for your question. 0000039436 00000 n Now adjusted pretax income was therefore 74% lower year-on-year at CHF 114 million. Kinner? And I was wondering. So the total net new asset inflow for the first half was CHF 2.8 billion. I did think that it was appropriate to give full guidance around this, so we've given the benefit we'd expect from current forward curves. It's not a surprise then that the banks shares have nosedived nearly 45% so far this year and are languishing at 52-week low levels. [At what point is FINMA] kind of giving you a clean bill of health on the things that you highlighted at the Investor Day last month? Thank you, David. And under David Wildermuth's competent leadership, I feel that we are moving in the right direction. First, revenues were adversely affected by impairments of CHF 17 million related to certain third-party assets. Now the Wealth Management division continued to see a challenging environment in the second quarter, albeit with adjusted pretax income adversely affected by certain asset impairments and nonoperational charges. The share price of the Swiss group was down 7% from CHF 16.16 (16.52) to CHF 15.02 earlier today, following the latest round of results. 0000040349 00000 n And finally, the cost line was negatively impacted by a CHF 38 million write-off in respect of certain IT-related assets relating to the digital program for the Wealth Management division. Eagle Point Credit Company Inc. (NYSE:NYSE:ECC) Q2 2022 Results Conference Call August 16, 2022 10:00 AM ET Company Participants Tom Majewski - CEO Ken Onorio - CFO and COO Conference Call. Credit Suisse, however, wants to do some very heavy lifting: in the medium term, it wants to cut its adjusted operating costs by 8%, or by CHF1.3bn a year based on costs in 2021. As I said, I think it is a very high capital ratio for the bank, certainly compared to historic norms. That clearly does not preclude, and I'll pass back to Axel and Thomas, any changes in the perimeter. I mean, as you say basically, we were not anticipating the $200 million charge in respect of unapproved electronic communications. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 2022, Nasdaq, Inc. All Rights Reserved. Can you, firstly, give us a bit of color in terms of the profitability of that business and perhaps how that's evolved in recent periods? Now despite the challenging environment, our capital and leverage ratios remain resilient. I think this -- I don't think I can add too much in terms of details. Or is there too much assumptions in there? 5 PF %CSnm. You had a 10% drop to your target in the past. 0000050735 00000 n And I think quite clearly, I mean, Thomas has very much led this. Let me spend a few minutes on the performance of the Investment Bank. Let me start then with the group numbers. I think today, we indicate, yes, it will be bold. Financial Services : Aug 2022: American Express: Q2 2022 Earnings Update: Company Performance: United States: Financial Services : Jul 2022: Banking Sector Hikes Credit to Indian . What I have said in the course of this morning is that I do have continued AT1 plans. <> Much of this loss came from the investment bank . Clearly what the funding costs will be in '23 or '24 will obviously depend critically on what our credit spreads are at the time [we actually issue]. Kailas Salunkhe for See here for a complete list of exchanges and delays. Our CET1 leverage ratio and our Tier 1 leverage ratio were both unchanged at 4.3% and 6.1%, respectively. 0000010560 00000 n I think we've given the numbers around the risk-weighted assets and leverage exposure for securitized products. Would it be better in July? Great. View the latest CS earnings date, analysts forecasts, earnings history, and conference call transcripts. When the symbol you want to add appears, add it to Watchlist by selecting it and pressing Enter/Return. Obviously, with FINMA, we are in very close contact and, I think, have their support on the general strategic direction and our intent. And I'm absolutely convinced that, under the leadership of our new CEO, Ulrich Krner, and the rest of our strong Executive Board, we have the right leadership team in place to transform and to deliver. So you put CHF 434 million this quarter. See why I think now could be a good time to take advantage of the undervalued CS stock price. PDF. I'm sure you'll recall that at last month's investor deep dive we identified at least CHF 650 million of savings in the CTOO function. As of June 30, 2022, SilverCrest had cash and cash equivalents of $118.6 million and $30.0 million remaining under a $120.0 million project financing facility (the "Credit Facility"). That is net of investment spend that we continue to allocate to our core businesses. We have exited. And then the second question is have you had discussions with FINMA. I mean, when you think about that business and if we got to a point somewhere down the road where you looked either to do a disposal or some form of exit, do you think there are interlinkages with other parts of the IB that you intend to maintain as -- in their current format? And you know our plan is to repatriate the bulk of that to CSAG in due course. The work on this is advanced, but I think -- and it's -- but I think it's clear, given what Jo said at the Investor Day in June, that's probably most advanced in terms of our technology operations. Okay, so the CHF 1 billion is pre any potential increase in funding costs [Indiscernible] number. Now on the strategy, I suppose, kind of similarly to the question before, could you just explain to us kind of what sort of options would you consider for the Investment Bank, where you've relooked at that operations very, very carefully kind of last year as well? Detailed on slide 48 0 20 . I think it's perhaps a little bit embarrassing. 1121142 results for Debit, Credit and Charge Card: Card penetration in Taiwan (2017 - 2025) Clear. The reported pretax loss of CHF 1.6 billion was primarily driven by major litigation expenses of CHF 1.1 billion as part of our approach to proactively resolve legacy cases, as well as a loss on Allfunds of CHF 0.5 billion. Look. ET Credit Suisse Strategy Update to Steal Thunder From 'Sideshow' 3Q -- Earnings Preview And I think what has been clear from that outsourcing is that there are significant potential in -- for savings in some of our supplier relationships, and that does include some of our managed servicing arrangements. 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