Credit Suisse earnings beat estimates, but get hit by Mozambique scandal charge

A Credit Suisse logo in the window of a Credit Suisse Group AG bank branch in Zurich, Switzerland, on Thursday, April 8, 2021.

Stefan Wermuth | Bloomberg | Getty Images

Credit Suisse has beaten analyst estimates for the third quarter but took a hit from charges relating to allegations of corruption in Mozambique and other legal issues.

Net income attributable to shareholders came in at 434 million Swiss francs ($476 million) for the third quarter, the bank said Thursday, above analyst estimates of 333.8 million Swiss francs according to data from Refinitiv. However, the third-quarter results were down over 20% from a year earlier.

The Swiss bank said income was hit by “major litigation charges” of 564 million Swiss francs, including 214 million Swiss francs relating to its settlement over the “Mozambique matter” and “litigation provisions in connection with certain other legacy matters.”

The Swiss bank has been fined by global regulators following a corruption scandal involving the Mozambique’s tuna fishing industry.

Here are other highlights for the quarter:

  • Revenue rose to 5.4 billion Swiss francs from 5.2 billion Swiss francs a year ago
  • CET 1 ratio, a measure of bank solvency, was 14.4%, up from 13% a year ago

Wealth management boost

The bank said its results got a boost from its wealth management division. Net revenue at this unit rose 3% to 3.3 billion Swiss francs, with assets under management up 9% to 843 billion Swiss francs.

“Wealth Management businesses returned to robust net new assets and higher transaction revenues sequentially, while recurring commissions & fees and client business volumes demonstrated strong year on year momentum,” the bank said in its earnings release Thursday.

Credit Suisse’s investment banking division revenue rose 10% to 2.5 billion Swiss francs.

Shares of the Swiss bank are down 12% year-to-date.

This is a breaking news story, please check back later for more.

(With Inputs from cnbc)

#Credit #Suisse #earnings #beat #estimates #hit #Mozambique #scandal #charge