March 16, 2021, 3:42 p.m.
–
Zurich – Credit Suisse reported a strong start to 2021 with high client activity. Because of the turmoil surrounding the insolvent financial company Greensill Capital, the big bank could “possibly incur costs” according to its own statements.
Credit Suisse announced on Tuesday at an investor conference that the strong start to the new year for the second largest Swiss bank, which was announced when the figures were presented in February, had continued. In both January and February, the banking group achieved the highest level of pre-tax profit in the last ten years.
Strong investment bank
The Investment Bank benefited particularly from this. This benefited from a “particularly good development in capital market issuing activity” but also from a good performance in sales and trading. The investment bank’s income increased by over 50 percent year-on-year, according to CS. But the three asset management areas were also able to benefit from the good client activity.
The interest income has stabilized compared to the previous quarter, the recurring commission and fee income continued to trend upwards, so the CS further. In addition, despite the ongoing corona pandemic, the frequency of loan defaults remained low.
4.4 billion returned to funds
With the dissolution of the “supply chain financing funds”, which the CS had created with the Australian-British Greensill Capital, the priority remains on the repayments to the fund investors, so the CS. The bank is working with the Greensill insolvency administrator.
After paying out $ 3.1 billion to investors in the last few days, CS has now secured further cash of just under 1.3 billion, as CS boss Thomas Gottstein said at the investor conference. So far, around $ 4.4 billion has flowed back from the fund. In addition, new cash flows “daily” back to the CS, so Gottstein.
At the beginning of March, CS announced the liquidation of the four funds, which at that time still had assets of around 10 billion dollars. This was only a few days after receiving information that an important insurance company no longer wanted to insure new values, Gottstein said at the conference. The four funds invested in claims from suppliers to companies.
Loan repayment of 50 million
The bank was also able to announce news regarding its loan to Greensill Capital of 140 million dollars: Here the insolvency administrator made a repayment of 50 million dollars. The outstanding amount of the secured loan is still $ 90 million.
Overall, these matters are still “in an early phase,” according to Credit Suisse. She wanted to point out, however, that the bank “may incur costs in this connection”, as the communication said. (awp / mc / ps)
–
