Credit Suisse Reports CHF 1.6 Bn Net Loss in FY21, Impacted by Archegos Scandal

Source: Chloe 2022-02-10

Highlights for the fourth quarter of 2021

Reported pre-tax loss of CHF 1.6 bn for 4Q21, compared to a reported pre-tax loss of CHF 88 mn in 4Q20, predominantly driven by the previously announced goodwill impairment of CHF 1.6 bn taken in the quarter mainly relating to the acquisition of DLJ that was completed in 2000. We took major litigation provisions of CHF 436 mn in 4Q21, part of our progress towards addressing legacy issues

On an adjusted basis, excluding significant items and Archegos, 4Q21 pre-tax income of CHF 328 mn, down 62% year on year
On an adjusted basis, excluding significant items and Archegos, net revenues were down 18% year on year, impacted by the cumulative effect of our reduced risk appetite during the year, more normal trading conditions and client deleveraging
Strong capital base, with CET1 ratio at 14.4% as of the end of 4Q21, stable compared to the end of 3Q21 and improved Tier 1 leverage ratio at 6.2% as well as CET1 leverage ratio at 4.4%; capital and leverage ratios benefitting from reductions of RWA and leverage exposure
Continued progress on remediation work on the Supply Chain Finance Funds (SCFF) matter. Returning cash to investors remains a priority; total cash paid out and current cash and cash equivalents of approximately USD 7.2 bn as of December 31, 2021

Highlights for the full year 2021

Net loss attributable to shareholders of CHF 1.6 bn, compared to net income attributable to shareholders of CHF 2.7 bn in FY20
Reported pre-tax loss of CHF 522 mn, down significantly year on year, compared to pre-tax income of CHF 3.5 bn in FY20; FY21 included gains made on our equity investment in Allfunds Group of CHF 602 mn as well as gains on real estate sales of CHF 232 mn. Results in FY21 were affected by the impact of CHF 4.8 bn relating to Archegos, CHF 1.6 bn in the form of a goodwill impairment, CHF 1.1 bn relating to major litigation provisions, a CHF 113 mn impairment related to the valuation of our non-controlling interest in York Capital Management and CHF 103 mn of restructuring costs
On an adjusted basis, excluding significant items and Archegos, FY21 pre-tax income of CHF 6.6 bn, up 51% year on year
On an adjusted basis, excluding significant items and Archegos, net revenues of CHF 22.5 bn, up 2% year on year
Adjusted operating expenses, excluding significant items and Archegos, of CHF 16.1 bn, down 4%
Group AuM of over CHF 1.6 trn as of December 31, 2021, up approximately 7% year on year
Wealth Management AuM of CHF 827 bn, up from CHF 795.3 bn as of December 31, 2020

Data & Report

Credit Suisse