Credit score Suisse slumped to a loss within the second quarter, it stated on Wednesday, with outcomes weighed down by its funding banking enterprise. The Swiss financial institution additionally introduced a change to its management and a shift to cut back the tarnished funding financial institution.
The financial institution stated it misplaced 1.59 billion Swiss francs, or about $1.65 billion, within the quarter, in contrast with a revenue of 253 million Swiss francs for a similar interval a yr in the past.
The financial institution’s weak efficiency for the three months that led to June stood in distinction to extra upbeat stories from European rivals Deutsche Financial institution and UBS.
Credit score Suisse has put in Ulrich Körner as its new chief government after a string of scandals, together with the blowup of hedge fund Archegos Capital Administration. A strategic evaluate is underway to maneuver the financial institution extra towards wealth administration and asset administration and away from funding banking.
Most of Credit score Suisse’s shortfall within the second quarter stemmed from the funding financial institution, which posted a internet lack of $1.2 billion, pushed by slower issuance of bonds and loans for firms and a decline in buying and selling income.
Deutsche Financial institution, by comparability, reported a revenue of 1.2 billion euros on Wednesday, or about $1.2 billion, which was nicely above analysts’ expectations and better than the roughly $830 million it earned a yr in the past. Switzerland’s UBS reported a revenue of $2.1 billion on Monday, additionally modestly larger than a yr in the past however wanting analyst expectations.
UBS’s funding banking revenues additionally suffered from a drastic decline in debt and fairness issuance, whereas it additionally famous a drop in exercise amongst personal purchasers amid volatility in monetary markets.