Credit Suisse beats market expectations
The bank saw strong growth in net income, profitability and returns in 2019
Credit Suisse has confounded market expectations with its latest earnings, posting a 69 per cent increase in annual net income. The figures come after the shock resignation of CEO Tidjane Thiam in early February, thanks to a spying scandal that rocked the bank.
Credit Suisse reported a net income of 3.4bn Swiss francs ($3.48bn, £2.68bn, €3.2bn) for 2019 and a net income of 852m Swiss francs for the final quarter. This compared to analysts’ predictions of a net income of 838.5m Swiss francs for the fourth quarter and 3.2bn Swiss francs for the year. Moreover, Credit Suisse shares grew by 12 per cent over the past year.
Thomas Gottstein, CEO designate, said in a statement that the bank aims to achieve a return on tangible equity of 9 per cent, up from 5 per cent in 2018. He said: “We aim to return capital to shareholders through a share buyback programme, expecting to buy back at least CHF1bn, market and economic conditions permitting and by sustainably increasing our ordinary dividend per share by at least 5 per cent per year.”
He added, “I am proud of what Credit Suisse has achieved during my tenure. We have turned Credit Suisse around, and our 2019 results show we can be sustainably profitable.”
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