Credit Suisse Q4 Loss Narrows

Posted February 15, 2018

Credit Suisse said it will buy back the VelocityShares Daily Inverse VIX Short-Term ETN, known by its trading symbol XIV.

The bank on Wednesday also disclosed an inquiry into its hiring practices in the Asia-Pacific region.

"2018 is set to be a year in which Credit Suisse should be able to deliver turnaround benefits from the large-scale restructuring programme", Baader Helvea analyst Tomasz Grzelak said in a note.

RBR, which previous year reported a Credit Suisse stake worth around 100 million Swiss francs ($107 million), has been pushing for a breakup of the bank and said last month the group could create "enormous" value by replacing its IT platform and cutting jobs.

The bank said it will pay shareholders 0.25 francs per share for previous year despite the loss.

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.

Investors say Credit Suisse's transformation is moving along.

Credit Suisse rose as much as 4.2 percent and traded 3.4 percent up at 1:38 Zurich, leading the Bloomberg Europe 500 Banks and Financial Services Index higher.

Marc Halperin, a fund manager at top-30 Credit Suisse shareholder Federated Investors, said investors had weathered enough not to be put off by last week's derivatives shakeup.

Credit Suisse on February 14 reported a 1.7 billion Swiss franc annual pre-tax profit from continuing operations compared to a 2.2 billion Swiss franc loss in 2016, on revenue which rose by 3 percent year-on-year to 20.9 billion Swiss francs.

"The most pleasing thing for me has been to see that our franchise is intact and actually vibrant", Thiam said in an interview with Francine Lacqua on Bloomberg Television.

The group proposed a reduced dividend of 0.25 francs per share.