Credit Suisse trims 4Q loss, cites upside of United States tax reform

Credit Suisse trims 4Q loss, cites upside of United States tax reform

Credit Suisse trims 4Q loss, cites upside of United States tax reform

The Swiss bank Credit Suisse is expected to report a third consecutive annual loss, mainly due to write off of 2.3 billion CHF (2.45 billion USD) related with the U.S. tax reform.

It reported a net loss of 983 million Swiss francs ($1.05 billion) for the year and said that it paid 2.74 billion Swiss francs in income tax expenses, primarily related to the re-assessment of deferred taxes resulting from the US tax changes.

By 0955 BST, Credit Suisse shares were trading 4% higher at CHF17.15.

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

Overall, fourth-quarter revenue of 5.19 billion francs ($5.56 billion) at the bank beat the 5.04 billion franc estimate of eight analysts polled by Bloomberg. Its CET 1 ratio rose to 12.8 percent from 11.5 percent in the last quarter of 2016. "In the second full year of our restructuring plan, we remain focused on execution", Thiam added. This unit saw an increase of 13 percent year-on-year for its assets under management.

The Board of Directors will propose to shareholders at the Annual General Meeting on April 27, 2018, that a distribution of CHF 0.25 per share be paid out of capital contribution reserves for the financial year 2017.

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Speaking to CNBC, Thiam said that it's "too early" to announce any share buybacks or higher dividends. "We generated profitable growth in 2017".

However, 2018 could be the turning point.

"The most pleasing thing for me has been to see that our franchise is intact and actually vibrant", Thiam said in an interview with Francine Lacqua on Bloomberg Television.

The Swiss bank produced the notes, which were then sold by third parties to market makers, Mr. Thiam said.

Mr Thiam said recent volatility had boosted the bank's markets business at the start of this year, suggesting a return to choppier conditions could benefit investment banks after a period of calm.

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