Credit Suisse Reports 4Q22 Pre-Tax Loss of CHF 1.3 Bn, With Net Revenues Down 20% MoM

Credit Suisse published today its financial results for the fourth quarter and full year of 2022, unveiling that its CET1 capital ratio as of the end of Q4 rose to 14.1% from 12.6% at the end of Q3, mainly driven by the capital raises with gross proceeds of CHF ~4.0 bn as well as Risk Weighted Asset (RWA) reductions, partially offset by its net loss.

During the quarter, the bank reported pre-tax loss of CHF 1.3 bn, down from 3Q22's CHF 1.7 bn. The net revenues was CHF 3.1 bn, decreasing 20% month-on-month. Net loss attributable to shareholders was CHF 1.4 bn, down from 3Q22's CHF 4 bn. The tier 1 leverage ratio stood at 7.7%, compared to the prior quarter's 6.0%.

For the full year of 2022, the bank generated net revenues of CHF 14.9 bn, dropping 34% from 2021's CHF 22.7 bn. Pre-tax loss came in at CHF 3.3 bn, compared to the prior year's CHF 600 mn. Net loss attributable to shareholders rose from 2021's CHF 1.7 bn to CHF 7.3 bn. CET1 ratio dipped to 14.1% from 2021's 14.4%. Besides, the bank reported operating expenses for the year of CHF 18.2 bn, down 5% year on year, which included major litigation provisions of CHF 1.3 bn and restructuring expenses CHF 533 mn.

"2022 was a crucial year for Credit Suisse. We announced our strategic plan to create a simpler, more focused bank, built around client needs and since October we have been executing at pace. We have a clear plan to create a new Credit Suisse and intend to continue to deliver on our three-year strategic transformation by reshaping our portfolio, reallocating capital, right-sizing our cost base, and building on our leading franchises," said Ulrich Körner, Chief Executive Officer of Credit Suisse Group AG.

Last month, Fazzaco reported that the Swiss lender was accelerating its cull plan​, looking to shed more than 10 % of its European investment bankers this year.