Revenue drop pushes Credit Suisse to loss
CREDIT Suisse made its first quarterly loss since 2008 last year, the bank revealed in its results yesterday.
The bank lost nearly SFr1bn (£690m) pre-tax and SFr637m in net losses after revenues plunged by over a third for the group.
The investment bank was worst hit: it saw top-line income fall away by 64 per cent in the fourth quarter compared to the same period in 2010, coming to SFr1.25bn. Costs fell only 14 per cent to SFr2.53bn in the quarter.
Overall the division lost a catastrophic SFr1.3bn in just the last three months of the year. For the whole year, the numbers were also dismal: its pre-tax profits all but disappeared, dropping from SFr3.53bn to SFr79m.
Earnings from managing the assets of rich clients also fell off sharply: its wealth management division saw pre-tax profits drop by 53 per cent and the private bank’s earnings fell by 43 per cent. Profits also more than halved in asset management.