Brady Dougan, Credit Suisse CEO
Zurich, Switzerland (GenevaLunch) – Credit Suisse says it finished the difficult year of 2009 with “resilience”: CHF6.7 billion in income, net new assets of CHF44.2 billion and a tier 1 ratio of 16.3 percent. The bank also says, in reporting its financial results Thursday 11 February, that while the average variable compensation was CHF144,000, much of the bonus money is deferred: 40 percent throughout the bank and 60 percent for senior management. Deferred awards are “subject to performance criteria, which may result in future negative adjustments.”
The tier 1 ratio indicates the state of health of a bank’s reserves.
Return on equity was 18.3 percent. The 2009 financial results compare well to the CHF8.2 billion loss in 2008, but net income is slightly lower than analysts were predicting. The bank’s share rose in trading Thursday morning.
Brady Dougan, the bank’s chief executive officer, says the bank put in a “strong performance”, even in the fourth quarter when client trading was down. The bank’s policy for 2009 bonuses is labeled “responsible”, with, for example, Q4 bonuses in the negative in investment banking, which pulled it down for the year to a record low of 41 percent, compensation to revenue.
Links to other sites: Bloomberg, Credit Suisse press release, Le Temps (Fre)
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News story, GenevaLunch, 11 February 2010.
Filed under: Business
Tags: banking, bonuses, Credit Suisse, financial results 2009, net income, Swiss banks, Switzerland