Credit Suisse, Paradeplatz, Zurich
ZURICH, SWITZERLAND – Credit Suisse showed a first quarter 2012 return to positive net income, Switzerland’s second largest bank said Wednesday 25 April. The results were announced before markets opened.
Chief executive Brady Dougan said in a statement that the bank had a good start to 2012, and the figures were indeed better than analysts’ predictions of a loss.
The net income of CHF44 million was an improvement: Credit Suissse in the fourth quarter of 2011 suffered its first net loss since 2008.
But the figures were far off the CHF1.14b reported in Q1 2011, until “normalized” figures are compared, showing the bank with income of CHF1.35b. Normalized figures don’t include writedowns o f$1.6b that reflect the bank’s cost-cutting programme, with restructuring and bonus cuts.
Dougan’s salary was cut in half in March 2012.
“We began to see the effects from the measures we announced in mid-2011 to evolve our business model and cost structure and we benefited from an improved market environment, Dougan says. “Our reported results were adversely impacted by accounting driven fair value losses due to tightening of our own credit spreads.”
ZURICH, SWITZERLAND – The KOF, the economic research institute at the University of Zurich has upgraded its forecast for the Swiss economy in 2012, noting that the 0.8 percent rise hides a stronger upward swing towards the end of the year.
The group notes in a press release: “Private consumption will make the biggest contribution to growth. Exports will come out weaker due to the effects of the strong franc and stagnation in Europe. The labour market looks robust, unemployment figures will remain at 3.2 percent, a very low level by international standards.”
The outlook for exports is more negative than figures released Thursday by the federal statistical office imply. “The outlook for the export economy is mixed,” reports the KOF.
“The companies involved–foremost in the tourism industry–have to live with a strong currency that will squeeze margins.
Tourism (–1.4%) and other service exports (–0.7%) will shrink again this year. Growth in exported goods (1.5%) will be lower than last year (6.2%). The overall result is a growth in exports of 0.8%.“Imports will grow faster, 3.7%, whereby the trade balance with the GDP will be negative in 2012. Stronger growth in exports (4.7%) is also expected for the next year in the wake of the upswing, but the rate will still lag behind imports (7.9%).”
Swiss economy, 2012 forecast, source: KOF economic research institute in Zurich
CS bank bosses find pay deals down
Credit Suisse is cutting the pay packages of senior managers, with chief executive Brady Dougan receiving CHF5.8 million, less than half of what he earned the previous year. Overall, compensation packages at the bank are down from CHF14.6 million in 2010 to CHF13.2m in 2011, with the bank saying in February that it was cutting its bonus pool by 41 percent after seeing profits fall 62 percent last year. The Group issued its annual report 23 March.
Etas project in Zimbabwe: the Roger Federer Foundation is spending some CHF80,000 a year on the project to improve the infrastructure of 8 schools, as well as investing in teacher training and the quality of education for about 2,000 children in the Matopo region.
Basel and Zurich, Switzerland (GenevaLunch) – Roger Federer has signed a 10-year contract with Swiss bank Credit Suisse, for an undisclosed sum, the bank announced Monday 16 November. Federer, on his web site, notes that “As part of the partnership agreement, Credit Suisse will make a significant annual contribution to the Roger Federer Foundation, which is dedicated to helping disadvantaged children and to promoting education, sports and play, particularly in Africa.” The foundation was inspired by Federer’s South African mother and currently states on its web site that its capital is CHF4 million.
The bank’s CEO, Brady Dougan, did not stint in his enthusiastic praise of the Swiss tennis star:
Brady Dougan, Credit Suisse CEO
Zurich, Switzerland (GenevaLunch) – Credit Suisse has moved into the number one bank slot in Switzerland, overtaking UBS in terms of capitalization, with strong first quarter results published 23 April. The bank’s return on equity for shareholders was up 22.6 percent. Net income was CHF2 million during the first quarter, compared to a loss of CHF2.15 m during the same period in 2008.
Brady Dougan, Credit Suisse CEO
Zurich, Switzerland (GenevaLunch) – Switzerland’s second largest bank, Credit Suisse, 11 February announced its 2008 results, a loss of CHF8.2 billion, worse than expected. The news comes one day after UBS, the country’s largest bank, announced a loss of CHF20b, the largest annual loss in Swiss corporate history.
