Credit Suisse Achieves Net Revenues of CHF 18.5 Bn in Q1 2023, Surging 319% YoY

Credit Suisse​ on Monday has released its financial results for the first quarter of 2023, showing that its performance during this period was largely impacted by actions leading up to and stemming from the planned merger between Credit Suisse and UBS.

The Q1 net revenues registered 319% significant increase on a yearly basis, up from Q1 2022’s CHF 4.4 billion to CHF 18.5 billion. Provision for credit losses for the quarter was CHF 83 million, compared to that of the prior quarter at CHF 41 million.

Total operating expenses stood at CHF 5.6 billion, rising 14% year-over-year and 30% over the prior quarter, mainly reflecting the goodwill impairment charge and increases in compensation and benefits, partially offset by lower general and administrative expenses and lower restructuring expenses.

Net income attributable to shareholders reached CHF 12.4 billion, compared to the previous quarter’s loss of CHF 1.4 billion. Return on tangible equity surged to 117.5%.

Besides, Credit Suisse experienced significant net asset outflows during Q1 2023, which came in at CHF 61.2 billion. These outflows have moderated but have not yet reversed as of April 24, 2023, according to the official press release.

The bank ended the quarter with Assets under Management of CHF 1.3 billion, down 3% over the prior quarter and 19% over the last same period. Pre-tax income was CHF 12.8 billion, compared to Q4 2022’s pre-tax loss of CHF 1.3 billion.

CET1 ratio for the period grew from the prior quarter’s 14.1% to 20.3%, mainly driven by the write-down of the AT1 capital notes as ordered by FINMA. Tier 1 leverage ratio dipped to 7.6% over Q4 2022’s 7.7%, with CET1 leverage ratio up from 5.4% to 7.6%.