Credit Suisse Reports Sharp Decline in Net Revenues in Q4 2020

Credit Suisse, a Switzerland-based investment bank, announced the financial results for the fourth quarter and full-year of 2020. The bank posted a net loss of CHF 353 million in the last quarter of 2020. Net revenues reached CHF 5.2 billion, which is a drop of 16% compared to the same period in 2019.

According to the official announcement, the global investment banking business of Credit Suisse posted strong performance despite the overall decline in net revenues. The global investment banking division posted revenues of $10.2 billion in FY 2020, which was up 19% compared to 2019. Fixed income sales and trading, equity trading, capital markets & advisory posted strong gains in 2020.

Commenting on the recent financial results, Thomas Gottstein, Chief Executive Officer of Credit Suisse Group AG, said: “Despite a challenging environment for societies and economies in 2020, we saw strong underlying performance across Wealth Management and Investment Banking while addressing historic issues. We remained focused on serving our clients around the globe and on delivering value to our shareholders. The steady Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term of the strategic initiatives we announced last July supports our growth agenda and allows for further investment in our businesses.”

Investment Banking and Wealth Management

For FY2020, net revenues remained flat at CHF 22.4 billion. The total operating expenses were up 2% to CHF 17.8 billion. The wealth management-related businesses of Credit Suisse posted strong underlying performance in 2020 as transaction-based revenues jumped 8% compared to 2019. Furthermore, the bank reported RoTE of 6.6%. The firm is planning to accelerate its wealth management and investment banking growth this year.

“Looking forward into 2021 and beyond, we aim to further accelerate growth in Wealth Management and deliver sustainable returns in Investment Banking. We remain strongly committed to positioning Credit Suisse as a leader in sustainability and driving digitalization and automation to generate positive operating Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term. I would like to thank all our employees for their outstanding commitment and loyalty,” Gottstein mentioned in the official announcement.