Credit Suisse has strong start to 2018 after third straight loss

Credit Suisse has strong start to 2018 after third straight loss

Credit Suisse has strong start to 2018 after third straight loss

Credit Suisse proposed a distribution of CHF0.25 per share be paid out of capital contribution reserves for the financial year 2017. Cost cuts give it a good base to benefit from private-equity deal making and any further pickup in action among its superwealthy clients.

Credit Suisse shares are trading higher Wednesday, after the Swiss Bank reported a third straight annual loss, but one that was smaller than expected.

"Credit Suisse has been responding to requests from certain governmental and regulatory authorities ... regarding Credit Suisse's hiring practices in the Asia-Pacific region and, in particular, whether Credit Suisse hired referrals from government agencies and other state-owned entities in exchange for investment banking business and/or regulatory approvals, in potential violation of the US Foreign Corrupt Practices Act and related civil statutes", the bank said when reporting its full-year results for 2017.

Investors say Credit Suisse's transformation is moving along.

The first six weeks of 2018 showed a "strong start" in the market-dependent businesses, with revenue gains of 10 percent in its global markets unit and 15 percent in Asia-Pacific markets, Credit Suisse said Wednesday, sending the shares up by the most in more than two months. On a pre-tax basis, it was the bank's first year in the black since Thiam launched the turnaround plan in 2015.

While the market swings of the past week have unnerved investors, they're generally good news for investment banks because clients transact more.

That's a welcome change from the fourth quarter, when revenue from fixed-income trading fell 4.7 percent at Credit Suisse, while equities trading slumped 22 percent.

The company warned in the prospectus that the product has "zero long-term value", he said.

It reported a net loss of 983 million Swiss francs ($1.05 billion) for the year and said that it paid 2.74 billion Swiss francs in income tax expenses, primarily related to the re-assessment of deferred taxes resulting from the USA tax changes.

And, while revenues grew, Credit Suisse also reduced costs by 6% between 2017 and 2016.

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