Credit Suisse Q4 Loss Narrows, Revenues Down; Sees Substantial Pre-tax Loss In FY23

(RTTNews) - Swiss banking major Credit Suisse Group AG (CS) reported Thursday that its fourth-quarter net loss attributable to shareholders of 1.39 billion Swiss francs was narrower than last year's loss of 2.09 billion francs.

Pre-tax loss was 1.32 billion francs, compared to loss of 1.66 billion francs a year ago.

Adjusted pre-tax loss was 1.02 billion francs, compared to income of 328 million francs a year earlier.

Net revenues, meanwhile, fell 33 percent to 3.06 billion francs from last year's 4.58 billion francs.

Assets under Management or AuM was 1.29 trillion francs, compared to prior year's 1.61 trillion francs.

Further, the company said its Board will propose a cash dividend of 0.05 franc per share for 2022, subject to shareholder approval at the 2023 Annual General Meeting.

Looking ahead, Credit Suisse said it would expect the Group to report a substantial loss before taxes in 2023. The outlook reflects the adverse revenue impact from the previously disclosed exit from non-core businesses and exposures as well as, in particular restructuring charges related to cost transformation.

Separately, Credit Suisse announced the acquisition of Klein Group LLC, the investment banking business of M. Klein & Co. LLC, for a purchase price of $175 million.

In addition, Michael Klein has been appointed Chief Executive Officer of Banking and CEO of the Americas, as well as designated CEO of CS First Boston. He will join the Executive Board and report directly to Group CEO Ulrich Körner.

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