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Press Release

Credit Suisse Group announces third quarter 2020 financial results

Strong business growth and continued capital generation   Key financial highlights:  

  • 3Q20 reported results: PTI of CHF 803 million, down 30% year on year due primarily to non-repetition of last year’s InvestLab gain of CHF 327 million
  • Reported results for 3Q20 include restructuring expenses of CHF 107 million, major litigation provisions of CHF 152 million and a net adverse impact on our PTI of CHF 103 million from foreign exchange moves, primarily from USD weakness
  • 3Q20 adjusted results excluding the InvestLab gain, at constant foreign exchange rates*: PTI of CHF 1.2 billion, up 41% year on year, net revenues of CHF 5.5 billion, up 11%
  • 9M20 Return on Tangible Equity (RoTE) of 9.8%
  • Strong capital position with CET1 ratio of 13.0% in 3Q20, up from 12.5% in 2Q20; Tier 1 leverage ratio of 6.3%[i] in 3Q20, up from 6.2%1 in 2Q20
  • Committed to deliver to shareholders:
    • Board of Directors recommends shareholders to approve second half of 2019 dividend of CHF 0.1388 per share at forthcoming Extraordinary General Meeting (EGM) on November 27, 2020
    • Continued accrual of 5% higher dividend for 2020 compared to 2019 dividend
    • Intention to restart share buybacks in January 2021, with a 2021 share buyback program of up to CHF 1.5 billion and an expected repurchase of at least CHF 1.0 billion next year2

Key strategic highlights, delivering sustainable growth:

  • Continued momentum in Wealth Management businesses, with CHF 11.1 billion of Net New Assets (NNA) in 3Q20, including record NNA from IWM PB; total NNA of CHF 18.0 billion; total Assets under Management of CHF 1.5 trillion at the end of 3Q20
  • APAC division delivered adjusted Return on Regulatory Capital (RoRC), excluding significant items*, of 20% in 9M20; across divisions, in 3Q20 the Asia Pacific region delivered strong year on year growth in regional revenues3 of 29%4 excluding the InvestLab gain*, now contributing 20% of total 3Q20 Group revenues
  • In Switzerland, planned integration of Neue Aargauer Bank on track and launched CSX, positioning Credit Suisse as a digital leader in retail banking
  • Single global Investment Bank with adjusted* RoRC of 14% in 9M20 with strong revenue growth across fixed income sales and trading, equity sales and trading and capital markets
  • Strong year on year revenue growth in Global Trading Solutions (GTS) of 28%5 in 3Q20, delivering institutional-style solutions to our wealth management clients
  • Successful execution of key strategic initiatives as previously announced with expected gross savings of approximately CHF 400 million to CHF 450 million from 2022 onwards; allow for reinvestment in full, subject to market and economic conditions