Credit Suisse cushions image blows with hard cash

Credit Suisse cushions image blows with hard cash

Credit Suisse cushions image blows with hard cash

The bank said it will pay its first all-cash dividend in four years, a move it adopted last year following a pay snafu which saw Credit Suisse (CS) back down amid massive pressure from large institutional investors.

Credit Suisse ascribed the rise to CEO Tidjane Thiam's three-year deep restructure of the bank.

Swiss bank Credit Suisse announced a third-consecutive annual loss for 2017, but focused all comments on the positive future impact of its restructuring efforts, which began in 2016.

After a strong start to 2018, Credit Suisse said: "Our market-dependent activities remain exposed to a number of uncertainties, from geopolitical developments, to the path and speed of interest rate changes in major economies", the Credit Suisse earnings release said. "This year should be the first year where that (surplus) number is actually meaningful", Thiam said. "It's still a cheap stock", he said.

Net revenue was CHF5.19 billion, compared to CHF5.18 billion in the prior year. The main trading unit, a division called global markets that's run by Brian Chin, posted a bigger loss before tax than analysts had estimated.

Credit Suisse recorded a full-year net loss last year as changes in US taxes wiped out its profits. Thiam said that there will be further cost cuts in the business this year but that the main target would be to increase productivity.

It reported a loss of 983 million Swiss francs (851 million euros $1.05 billion) in 2017, down from 2.7 billion Swiss francs the previous year. "In the first six weeks of this year, we have seen evidence that this approach is paying off".

The bank said the Asia Pacific region delivered its best quarterly results to date with adjusted pre-tax income of 239 million Swiss francs, driven by net revenues of 626 million Swiss francs.

And, while revenues grew, Credit Suisse also reduced costs by 6% between 2017 and 2016.

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