Credit Suisse Restates Financial Results to Ready Investorsby
Credit Suisse Group AG revisited five years of financial statements to provide a track record for new divisions ahead of next month’s earnings report.
The figures issued Friday show the domestic business turning a pretax profit of 1.3 billion francs ($1.3 billion) in the first nine months of last year. Credit Suisse recorded 994 million francs in pretax income for its Asia-Pacific division through September.
Credit Suisse is scheduled to publish fourth-quarter results on Feb. 4. Previously such reports were based on two divisions: investment banking and a unit combining private banking with wealth management.
But in an overhaul announced in October, Chief Executive Officer Tidjane Thiam reorganized the bank mainly along geographical lines. Separate units were created for its Swiss operations and for clients in the Asia-Pacific region. Elsewhere, trading activities were folded into a global markets unit, while advisory and underwriting operations were grouped under investment banking and capital markets.
Restating financial reports since 2011 to mirror the new structure will improve market understanding of the company, said Amy Rajendran, a spokeswoman for the Swiss bank. While the accounting exercise doesn’t change the group’s consolidated results, it provides a basis for gauging progress toward goals that include floating part of its Swiss bank and more than doubling pretax profit from APAC.
Credit Suisse remains committed to these and other targets set in October, Chief Financial Officer David Mathers said on a call with analysts Friday.
Andreas Venditti, an analyst at Vontobel in Zurich, said the numbers for the Swiss business weren’t detailed enough as consumer operations were lumped together with corporate and private banking. “It would have been desirable to show the distinction between wealth management and retail banking,” he said.
Global markets earned 1.53 billion francs in the first nine months of last year, the bank said, without breaking down revenue for fixed income and equities. Investment banking and capital markets posted a pretax profit of 144 million francs in that period.
A fifth division focused on international wealth management beyond Switzerland and the Asia-Pacific region contributed 729 million francs in pretax profit through September of last year, the bank said.
The stock has declined 18 percent since Chief Executive Officer Tidjane Thiam outlined plans to increase capital, scale back the investment bank and expand wealth management. The bank raised about 6 billion Swiss francs in a share sale that was completed in December.