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• Revenues declined by 29% to CHF3.65bn for Q2 22 compared to Q2 21
• Total operating expenses rose by 10% to CHF4.75bn for Q2 22
• Net result attributable to shareholders was a loss of CH1.6bn for Q2 22
• CS announced the resignation of the CEO and the appointment of a successor
Companies: Credit Suisse Group AG
• Credit Suisse has again issued a profit warning, this time for Q2 22
• Credit Suisse expects to report a loss of the Investment Bank division which leads to a loss for the group for Q2 22
• We would be not surprised were the CEO to be replaced
• Revenues declined by 42% to CHF4.4bn for Q1 22 compared to Q1 21
• Provisions for credit losses were income/releases of CHF110m for Q1 22 compared to a loss of CHF4.4bn for Q1 21
• Net result attributable to shareholders was a loss of CH273m for Q1 22 compared to a loss of CHF252m for Q1 21
• CS announced that three executive board members will step down
• The Q1 22 of Credit Suisse started as Q4 21 ended: with a profit warning
• Credit Suisse will increase legal provisions and expects a loss in reported earnings for the first quarter 2022
• Net result attributable to shareholders was a loss of CHF2.0bn for Q4 21 compared to a loss of CHF353m for Q4 20, which is worse than our expectations.
• Q4 21 figures were impacted by a goodwill impairment (DLJ) of CHF1.6bn and some legacy items of CHF0.4bn as announced before.
• Net new money inflow was CHF31bn for 2021.
• FY2022 will be a transition year for Credit Suisse, which is affected by restructuring costs and higher compensation costs.
• Q4 21 will be negatively impacted by litigation provisions of around CHF500m
• Group CET1 ratio is expected to exceed 14% at year-end 2021
• Reduce Investment Bank capital by more than CHF3bn and invest it in Wealth Management
• Management wants to shift CHF1-1.5bn of costs to invest more in technology
• Switch of organisation structure to a matrix of global business and regions
• New RoTE target of above 10% by 2024 from 10-12% before
• Net profit declined by 21% to CHF434m for Q3 21 compared to Q3 20 but ahead of consensus
• Provisions for credit losses rose from CHF94m for Q3 20 to a credit of CHF144m for Q3 21
• Net new money inflow was CHF5.6bn for Q3 21 compared to CHF18bn for Q3 20
• Group strategy was updated at an Investors Day today
• Revenues were down by 18% to CHF5.1bn for Q2 21 compared to Q2 20.
• CHF594m charge on the Archegos default was partly offset by a pre-tax gain of CHF298m from Allfunds.
• Pre-tax profit was down by 48% to CHF813bn for Q2 21 compared to a strong Q2 20 result. The high tax ratio burdened net profit.
• Net new money outflow was CHF4.7bn for Q2 21 compared to an inflow of CHF9.8bn for Q2 20.
• CHF4.4bn charge on Archegos default led to a pre-tax profit loss of CHF757m for Q1 21.
• Additional charge of around CHF600m from Archegos expected in Q2 21 but potential release of COVID-19 provisions
• Strong revenues growth of 31% in Q1 21
• CET1 ratio strengthened by the successful placement of 203m new shares via two series of Mandatory Convertible Notes today.
• Swiss regulator FINMA investigates Archegos and Greensill cases at Credit Suisse.
CHF4.4bn charge on Archegos default will lead to a pre-tax profit loss of around CHF900m for Q1 21.
Share buy-back programme suspended.
Brian Chin, CEO of the Investment Bank, and Lara Warner, Chief Risk and Compliance Officer, have to step down.
• Net result attributable to shareholders was a loss of CHF353m for Q4 20 compared to a profit of CH852m in Q4 19 which is better than consensus expectations.
• Q4 20 figures were impacted by several non-operating items which had an overall significant negative impact.
• Net new money inflow was CHF8.4bn for Q4 20.
• The dividend per share proposal rose by 5% to CHF0.2926 for FY2020 compared to CHF0.2776 for FY2019.
Credit Suisse will increase its provisions for the MBIA case and other RMBS-related cases by another $550m in Q4 20.
We had already expected a loss for Q4 20 for CS which should increase due to the provision increase.
• Net profit declined by 38% to CH546m in Q3 20 which was 5% below consensus expectations, but adjusted profit was up by 41%.
• Q3 19 benefited from InvestLab´s evaluation gain of CHF329m whereas other “significant” items burdened the Q3 20 by around CHF360m .
• Net new money inflow was CHF18bn for Q3 20.
• Credit Suisse intends to restart share buybacks of up to CHF1.5bn in January 2021.
• Revenues were up by 11% to CHF6.2bn, mainly due to an increase in trading revenues from CHF182m for Q2 19 to CHF1.25bn for Q2 20.
• Net profit rose by 24% to CH1.16bn and was clearly above consensus expectations of CHF700m for Q2 20.
• Net new money inflow was CHF9.8bn for Q2 20.
• CS integrates again Global Markets, IB&CM and APAC Markets from August onwards to form a globally-integrated Investment Bank (IB) as it was until 2015.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Credit Suisse Group AG.
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After an incredibly volatile past week, Legal & General released an update clarifying its financials and objectives for FY 22. In all, L&G has been reassuring on the impact of the turmoil surrounding the Gilt market and LDI pensions, while it seems that failing schemes would ”only” impact pensioners rather than L&G directly.
Companies: Legal & General Group Plc
Challenger Energy (CEG LN): Discontinuing coverage - We are discontinuing coverage on Challenger Energy Group.
Longboat Energy (LBE LN)C; Target price of £1.50 per share: 3-5 well programme in 2023. Increased resources estimate at Kveikje – There were no surprises in the 1H22 financials. The gross contingent resources estimates at Kveikje have been increased from 28-48 mmboe to 35-60 mmboe (2C-3C) based on a new CPR following post wel
Companies: HUR CNE CNE I3E CZA CASP DEC IOG PPC SQZ TRIN RBD SAVE SLE ECHO BLOK CEG LBE PTR
Companies: Plus500 Ltd.
Companies: H&T Group plc
Results are consistent with August’s update and confirm a breakout FY22, as Made Tech materially scaled its business – growing revenue 120% y/y (organic) to £29.3m, an exceptional result, which in turn drove a return to profitability, AOP: £2.3m (PY:£-0.8m). This was achieved by Made Tech more than doubling its headcount and alongside this, also delivered sales bookings of £51.1m (+115% y/y) which includes Made Tech’s largest ever win. Made Tech’s y/e backlog is also up sharply at £38.2m (+133%
Companies: Made Tech Group PLC
Singer Capital Markets
Companies: Aquis Exchange Plc
With pandemic restrictions lifted and the return to work underway, Regional REIT’s (RGL) H122 results show good and continuing operational progress. The sharp rise in energy prices affected property costs, but this should moderate with government support measures. Combined with income seasonality and fully fixed/hedged borrowing costs, RGL expects a stronger H222 performance and reiterated its full-year DPS target of 6.6p.
Companies: Regional REIT Ltd.
Companies: Gore Street Energy Storage Fund PLC
With results two weeks away, PRSR has flagged that it now expects EPRA NAV will be “no less than 116p”. This is +11% in H2 alone and 10% ahead of our 106p forecast; driven by +5% rental growth and tightening valuation yields. There has been further development progress in Q1’23 to date, with 55 homes completed taking the estate to >4,800 homes. We note a strong rental performance against a more challenging macro-economic backdrop. The shares trade on a 25% discount to reported FY22 EPRA NAV with
Companies: PRS REIT Plc
Dish of the day
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What’s cooking in the IPO kitchen?**
TECC Capital plc, to be renamed EDX Medical Group, intends to join the AQSE Growth Market. EDX operates a molecular biology and diagnostics laboratory in Cambridge, UK, from which it performs research & development, provides Polymerase Chain Reaction (PCR) testing and genomic sequencing services, undertakes quality assurance and has established expertise in the design, development, validati
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Companies: Real Estate Investors plc
Companies: FNX JOG PCIP
An increased in revolving credit facilities at NESF brings the total available to £205m with £115.5m currently drawn. We see this as well-timed as there is a lot of activity in the market for both PV and storage projects and the facility gives the fund the firepower to pursue the best opportunities in a timely fashion.
Companies: NextEnergy Solar Fund Ltd
Dish of the day
No joiners today.
Leavers: No leavers today.
What’s cooking in the IPO kitchen?**
Streaks Gaming plc, a UK-based provider of conversational gaming products intends to join the Standard Segment of the Main Market this autumn. The flotation is expected to value Streaks at approximately £10.2m (pre-money) and will make it the first LSE-listed "pure-play" conversational gaming company. Raising between £5-10m.
Independent Living REIT plc, intends to float on the Premium Segme
Companies: TBLD BOKU ERGO K3C MYX MYXR PGH
Time Finance released their FY22 annual results ending 31 May 2022 in-line with the trading update in July. It has also released a Q1/23A update which provides colour on the success of its new strategy focused on the core business. We leave forecasts unchanged and believe the company remains on track to hit our FY23E forecasts. Time looks significantly undervalued given it trades on a P/TNAV of 0.5x, an FY24E PE of 4.1x and over 65% growth forecasted in Adj PBT over the next two years.
Companies: Time Finance plc