Credit Suisse said it fell into the red in the second quarter on Wednesday and investment banking squeezed its performance. Swiss banks have also announced leadership changes and shifts to reduce polluted investment banks.
The bank said it lost CHF 1.59 billion, or about $ 1.65 billion, in the quarter, compared to a profit of CHF 253 million in the year-ago quarter.
Bank Poor performance The three months ending in June contrasted with brighter reports from European rivals Deutsche Bank and UBS.
Credit Suisse has appointed Ulrich Körner as the new CEO after a series of scandals, including the explosion of hedge fund Archegos Capital Management. Strategic reviews are underway to move banks away from investment banking for wealth management and asset management.
Most of Credit Suisse’s second-quarter shortfall was due to investment banks that posted a net loss of $ 1.2 billion due to delayed issuance of corporate bonds and loans and lower transaction returns.
By comparison, Deutsche Bank reported a profit of € 1.2 billion on Wednesday, or about $ 1.2 billion. This is well above analysts’ expectations, surpassing the approximately $ 830 million earned a year ago. Swiss UBS report Monday’s profit was $ 2.1 billion, a bit higher than it was a year ago, but it’s still below analysts’ expectations.
UBS’s investment banking earnings also noted that while debt and equity issuance fell sharply, private customer activity declined amid fluctuations in financial markets.
