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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.
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The group posted a strong set of results showing faster and stronger-than-expected net interest margin expansion and no signs of a deterioration and above all anxiety on the asset quality front. It remains to be seen if the UK government will allow banks to hold on to the benefit of interest rate increases and if the UK economy proves as resilient as expected.
Companies: Lloyds Banking Group plc
Legal & General disclosed strong HY 22 results, albeit in line with the consensus’ expectations. With most of the metrics improving on a yoy and sequential basis, we believe that the strong solvency position, in an environment with (sustainable?) higher yields, should trigger capital distributions to shareholders at the year-end.
Companies: Legal & General Group Plc
Aviva unveiled a fair operating result. While, in line with the insurance industry, Aviva saw a strongly negative impact from financial assets revaluation, the solvency position improved materially, yielding additional capital distributions. Once distributions cease, we believe that Aviva could be a takeover target.
Companies: Aviva plc
Last week, the UK government published the consultation paper on its Review of Electricity Market Arrangements (REMA). Any change potentially represents uncertainty in a market that has been wary of changes with a number of shares falling after early details of possible reforms were flagged in the press. We review the possible changes and conclude that while there is some risk, from what we can see at present the likely outcomes could be either minimal or beneficial for investors in clean energy
Companies: EQT IES DRX NESF PHE SAE
Cenkos:Duke Royalty Ltd -Record revenues keep on rolling
Companies: Duke Royalty Limited
Companies: H&T Group plc
Dish of the day
No joiners today.
Leavers: No leavers today.
What’s cooking in the IPO kitchen?**
Unigel Group, intends to join the Aquis Growth Market. Unigel Group is a pioneer in the field of thixotropic gels for the fibre optic cable industry. The Company is also a supplier of laminated steel tapes to the fibre optic cable industry in the US. Thixotropic gels and laminated steel tapes are essential components to the rapidly growing global fibre optic cable market. The Group exports
Companies: UJO FAB HAT HZM SYM TRAC
Dish of the day
No joiners today.
No leavers today.
What’s cooking in the IPO kitchen?
Unigel Group, intends to join the Aquis Growth Market. Unigel Group is a pioneer in the field of thixotropic gels for the fibre optic cable industry. The Company is also a supplier of laminated steel tapes to the fibre optic cable industry in the US. Thixotropic gels and laminated steel tapes are essential components to the rapidly growing global fibre optic cable market. The Group export
Companies: SDI FUL PURP OSI IXI BSE BRSD ATM
Great results posted by M&G, which recorded very resilient AUMs. The firm managed to outperform the consensus despite the tough environment. While the management avoided any capital plans comments, the resilient solvency position leaves great prospects while the current share buyback is still far from being completed.
Companies: M&G Plc
This quarter’s key observations
• Subsector performance: Marketplaces was by far the best performing subsector from an aggregate share price perspective (up 19.9%) vs. an average –5.2% for the other five subsectors. UK Digital Media was the worst performing subsector with a -12.4% aggregate share price move.
• Valuation trends: UK Managed Services saw the largest EV/ EBITDA derating (-2.1x) and is now on the lowest EV/Sales multiple (1.5x FY1) and second lowest average EV/EBITDA (11.3x FY1
Companies: CNIC BIG DEVO LBG OTMP SYS
Companies: Belvoir Group PLC (BLV:LON)SDI Group plc (SDI:LON)
Tatton Asset Management has announced the completion of a 50% stake in 8AM, following regulatory approval. We update our model on the back of this, reflecting the positive financial impact of the investment. We see 2-4% EBITDA upgrades over the forecast period and 1-3% EPS upgrades, as the operating profit contribution more than offsets the higher sharecount as part of the share consideration. 8AM will provide TAM’s clients with access to an extended range of risk profiled investments, underpinn
Companies: Tatton Asset Management Plc
Singer Capital Markets
Companies: Civitas Social Housing Plc (CSH:LON)Real Estate Credit Investments Limited (RECI:LON)
Companies: Real Estate Investors plc