Credit Suisse shares are trading higher Wednesday, after the Swiss Bank reported a third straight annual loss, but one that was smaller than expected. The loss came as Switzerland’s second largest bank reported a CHF2.74 billion income tax payment, mainly due to US tax reforms.
By 0955 BST, Credit Suisse shares were trading 4% higher at CHF17.15. The Credit Suisse stock price moved higher for much of 2017 and into January 2018, before falling in line with market volatility so far during February.
Credit Suisse turnaround continues
Credit Suisse reported a 2017 full year loss of CHF983 million, that’s below expectations of around a CHF1.1 billion loss.
Credit Suisse also reported full year net revenue growth of 5% to CHF20.9 billion. Fourth quarter revenues hit CHF5.2 billion. It’s pre-tax income, meanwhile, was CHF1.8 billion, compared with a loss of CHF2.3 billion in 2016.
And, while revenues grew, Credit Suisse also reduced costs by 6% between 2017 and 2016.
“2017 was a crucial year of delivery in our three-year restructuring plan, after 2016, which was a year of deep and radical reorganisation and restructuring,” said Credit Suisse CEO, Tidjane, Thiam.
“We believe the 2017 results we’re presenting today contain tangible evidence of the positive impact our restructuring efforts are having on the Group’s performance. In the second full year of our restructuring plan, we remain focused on execution,” Thiam added.
While the Swiss bank delivered a better-than-expected 2017 performance, Credit Suisse remains cautious over the year ahead.
The current period of market volatility, sparked by inflation and interest rate worries is among the bank’s concerns for the coming year.
After a strong start to 2018, Credit Suisse said: “Our market-dependent activities remain exposed to a number of uncertainties, from geopolitical developments, to the path and speed of interest rate changes in major economies,” the Credit Suisse earnings release said.
“We’re adopting a cautious short-term outlook in this period of heightened volatility,” stated.