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• The Swiss government and regulators partly ousted the shareholders and AT1 bondholders via an emergency law on Sunday
• UBS will take over Credit Suisse. CS shareholders will receive 1 UBS share for every 22.48 Credit Suisse shares held
• UBS benefits from CHF25bn of downside protection. CS’s Additional Tier 1 Capital of approximately CHF16bn will be written down to zero
• UBS is committed to a progressive cash dividend but has temporarily suspended share repurchases
• Cost reductions of m
Companies: Credit Suisse Group AG
• Net result attributable to shareholders was a loss of CHF1.4bn for Q4 22 (CHF7.3bn for 2022) compared to a loss of CHF2.1bn for Q4 21 (CHF1.65bn for 2021)
• Net new money outflow was CHF123bn for 2022 compared to an inflow of CHF31bn for 2021. The outflow in Q4 22 was CHF111bn.
• Credit Suisse acquires the Klein Group for a purchase price of $175m, the investment banking business of Michael Klein, the designated CEO of CS First Boston
• Capital increase of around CHF4.0bn announced
• Non pre-emptive placement of 462m shares to raise CHF1.8bn and new shareholder Saudi National Bank to hold 9.9%
• Capital increase with rights issue of 889.4m shares to raise CHF2.2bn at the end of November
• Expected offer price of CHF2.52 per share for the capital increase with rights issue
• Capital increase of around CHF4.0bn announced
• The Investment Bank unit will be split into four units including a bad bank (NCU) and CS First Boston as an independent Capital Markets and Advisory bank
• Core Return on Tangible Equity (RoTE) of more than 8%; Group RoTE of ~6%
• Revenues declined by 30% to CHF3.8bn for Q3 22 compared to Q3 21
• Total operating expenses were down by 10% to CHF4.1bn for Q3 22
• The net result attributable to shareholders was a loss of CHF4.0bn for Q3 22
• CS announced a new strategy and transformation plan
• 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
• 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.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Credit Suisse Group AG.
We currently have 38 research reports from 3
ORIT: renewables diversified across stage, technology, and geography…
Companies: Octopus Renewables Infrastructure Trust Plc
Kepler | Trust Intelligence
Companies: DSW Capital Plc
Companies: PayPoint plc
Companies: Mercia Asset Management PLC
Companies: Vanquis Banking Group PLC
Duke has released its H1/24A interim results for the period ending 30th September 2023 that are in-line with expectations. Recurring cash revenues increased 17% to £12.2m, whilst total cash revenues increased 35% to £14.1m. The portfolio continues to be resilient despite macroeconomic headwinds, and c£18m of capital was deployed across new and existing investments. We iterate a 1-year price target of 45p based on a target FCF yield of 8%.
Companies: Duke Royalty Limited
Positive interims from Vp this morning highlight another period of growth despite the mixed market backdrop. The results again illustrate the benefit of Vp’s diverse mix of specialist activities, with the quality of earnings confirmed by further growth in operating margin (now 13.9%) and ROCE (14.7%).
Strategic priorities include continued progress with ESG initiatives and a greater emphasis on Digital, with more on this likely to follow later in the year.
We maintain our Fair Value estimate o
Companies: Vp plc
CRTM reported a loss of £2.7M for the 12 months ending 30 June 2023.
Increased indirect ownership of the Molulu project from 40% to 70%, streamlining the corporate structure.
Commenced copper ore production at Molulu in January 2023.
In October 2023, the Company announced that it had entered into an off-take agreement with O.M Metal & Resources S.A.R.L, for a minimum of 20,000 tonnes of copper oxide ore.
Raised £600,000 at a price of 25p per share and raised a further £1.3M at 25p per
Companies: Critical Metals Plc
Agronomics (ANIC) invests in cellular agriculture companies. Since mid-2022 it has placed increasing emphasis on companies using precision fermentation technology or providing contract precision fermentation services, as these appear to have greater near-term commercial potential than cultivated meat and seafood. Agronomics’ NAV has risen almost 100% since the inception of the current strategy in April 2019, and looks set to increase further as the company’s portfolio holdings receive regulatory
Companies: Agronomics Limited
Companies: CPP Group plc
Hardman & Co Research’s focus is on the nine quoted infrastructure investment companies (IICs) and on the 22 renewable energy infrastructure funds (REIFs), most of which saw their share prices fall during 2022, while the FTSE 100 rose by just 0.9%. In our Quoted UK Infrastructure and Renewable Energy – Prospects for 2023 publication, we have addressed the three key issues of recent months: higher inflation, extremely volatile power prices and rising interest rates.
Companies: DGI9 INPP FTSV UKW GSF SEIT USFP HICL ORIT BSIF TRIG NESF JLEN SEQI HEIT GRP GCP FSFL 3IN PINT RNEW BBGI GSEO DORE L5M TENT GRID CORD HGEN
Hardman & Co
£23.3bn in enterprise value has been returned to AIM technology shareholders over the past six years in the form of 51 public to private takeouts, including 10 in 2023 alone with the takeovers of Smoove* and Tribal announced in early October. With UK valuations appearing cheap and looking more attractive to potential acquirers, we take a moment to reflect on the trends of corporate and private equity bidders targeting AIM-listed technology companies going back to 2017, through the uncertainties
Companies: CPX FNX CLBS PEB TIDE CNC ELCO IGP FTC IOM PCIP KBT MAI SRT VNET TRCS ING IQG DOTD TIA RCN NXQ TIG BBB ARC BBSN KRM GETB ACC JNEO SWG RDT QTX SPE CER EXR TRMR XLM BOOM CLX FADL LINV SND
AGT is trading at its widest ‘double discount’ since the great financial crisis…
Companies: AVI Global Trust PLC GBP
Macro issues dominate investor sentiment - Some basics for investors
The big topics in the investment world at the moment seem to be macroeconomic. With that in mind, we thought it would be useful to revisit some of the basics of the terms being used in the current environment, and to remind investors of the things to look out for (indeed, many younger investors may not have come across some of these influences in their investing lifetime):
• Recession does not affect
Companies: OCI ICGT FAS FJV IBT APP ARBB RECI PANR TRX FCSS AVO DNL FEV FSV STX VTA E7F0