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Credit Suisse reports big jump in net profit

Credit Suisse, Switzerland's second-biggest bank, said on Thursday that its net profit soared in the third quarter as it makes progress with an ambitious restructuring and cost-cutting programme.

Published: 2 November 2017 10:08 CET
Credit Suisse reports big jump in net profit
Fabrice Coffrini/AFP

The bank said in a statement that its bottom-line net profit amountedto 244 million Swiss francs ($244 million) in the period from July to September, up from 41 million Swiss francs a year earlier.

Revenues, however, fell by eight percent to 4.972 billion Swiss francs, it said.

Credit Suisse has embarked on a massive restructuring programme since Tidjane Thiam took over as chief executive in 2015.

And the group said it has made headway with its programme to bring down operational expenditure to below 18.5 billion Swiss francs by the end of the year.

In the July-September period, the bank made additional cost cuts of 400 million Swiss francs, it calculated.

“Our third-quarter results demonstrate the progress we are making,” CEO Thiam said.

But he acknowledged that client activity remains “muted” as “uncertain geopolitical developments, central bank policies and the magnitude and timing of reforms in the US, as well as historically low levels of volatility” have left their mark on business.

“In addition, activity levels in the third quarter of 2016 were unusually strong due to the combination of the effects of Brexit and the US elections,” Thiam added.

Looking ahead to the rest of the year, Credit Suisse said it expects global economic growth to remain strong overall in the fourth quarter, “which could be a significant tailwind for our activities in spite of continuing geopolitical uncertainty”.

“After seven quarters of our three-year plan, we remain firmly focused on delivering against our objectives for both business growth and efficiency improvement,” the statement said.

BANK

Deutsche Bank to pay $130m to settle US bribery probes

Deutsche Bank will pay $130 million to settle a foreign bribery probe and fraud charges in precious metals trading, US officials announced on Friday.

Published: 9 January 2021 15:08 CET
Deutsche Bank to pay $130m to settle US bribery probes
A woman walks past the offices of Deutsche Bank in London. Photo: Tolga Akmen / AFP
The bribery case relates to illegal payments and to false reporting of those sums on the bank's books and records between 2009 and 2016, the Department of Justice said in a press release.
   
The bank “knowingly and wilfully” kept false records after employees conspired with a Saudi consultant to facilitate bribe payments of over $1 million to a decision maker, the DOJ said.
   
In another case, the bank paid more than $3 million “without invoices” to an Abu Dhabi consultant “who lacked qualifications… other than his family relationship with the client decision maker,” the DOJ said.
   
In addition to criminal fines and payments of ill-gotten gains, Deutsche Bank agreed to cooperate with government investigators under a three-year deferred prosecution agreement.
 
   
In the commodities fraud case, Deutsche Bank metals traders in New York, Singapore and London between 2008 and 2013 placed fake trade orders to profit by deceiving other market participants, the DOJ said.
   
The agreement took into account Deutsche Bank's cooperation with the probes, DOJ said.
   
“Deutsche Bank engaged in a criminal scheme to conceal payments to so-called consultants worldwide who served as conduits for bribes to foreign officials and others so that they could unfairly obtain and retain lucrative business projects,” said Acting US Attorney Seth D. DuCharme of the Eastern District of New York.
   
“This office will continue to hold responsible financial institutions that operate in the United States and engage in practices to facilitate criminal activity in order to increase their bottom line.”
   
“We take responsibility for these past actions, which took place between 2008 and 2017,” said Deutsche Bank spokesperson Dan Hunter, adding that the company has taken “significant remedial actions” including hiring staff and upgrading technology to address the shortcomings.
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