Second quarter 2021 financial results
On July 29, 2021, Credit Suisse Group presented its second quarter 2021 financial results to investors and analysts as well as to media.
Highlights for the second quarter 2021
Resilient financial performance despite more conservative risk appetite and weaker environment for transactions vs 2Q20
- Reported net income attributable to shareholders of CHF 253 mn and reported pre-tax income of CHF 813 mn. Adjusted pre-tax income, excluding significant items and Archegos*, of CHF 1.3 bn, 11% lower than 2Q20
- Adjusted net revenues, excluding significant items and Archegos*, down 14% year on year as higher AM revenues and stable SUB revenues, were offset by lower APAC, IWM and IB revenues
- Adjusted operating expenses, excluding significant items and Archegos*, down 6% year on year, mainly driven by lower variable compensation
- Comprehensive focus on enhanced risk approach implemented in 2Q21 following the Archegos and supply chain finance funds (SCFF) matters and substantial reduction in RWA and leverage exposure in the Investment Bank by USD 20 bn and USD 41 bn, respectively, compared to end of 1Q21 levels
- Additional pre-tax losses of USD 653 mn (CHF 594 mn) relating to Archegos; publication of an independent external investigation report commissioned by the Board of Directors (see separate media release)
- Focus on returning cash to investors in the SCFF with investors receiving a total of approximately USD 5.9 bn following the upcoming fourth payment of liquidation proceeds planned for the first half of August 2021
Strong capital position and higher Assets under Management (AuM)
- Strong capital base, with CET1 ratio at 13.7%, benefitting from Mandatory Convertible Notes (MCN) issuance, the impact from the Allfunds Group IPO combined with the reduction in our investment to less than 10%, a proactive reduction in RWA in the IB and the removal of the temporary RWA add-on related to Archegos; Tier 1 leverage ratio has risen to 6.0%; CET1 leverage ratio stands at 4.2%
- Joint Board of Directors and Executive Board long-term vision and mid-term plan expected to be finalized by the end of the year
- Record Group Assets under Management (AuM) of over CHF 1.6 trn at the end of 2Q21; net asset outflows of CHF 4.7 bn with net new assets in SUB and AM more than offset by net asset outflows in APAC, mainly driven by proactive de-risking, and a small net asset outflow in IWM
- Record Wealth Management AuM at CHF 853 bn, supporting recurring commissions and fees’ growth of 19% year on year; client business volumes at higher levels
* Refers to adjusted results, adjusted results excluding significant items, and adjusted results excluding significant items and Archegos, as applicable. Results excluding certain items included in our reported results are non-GAAP financial measures. For a reconciliation to the most directly comparable US GAAP measures, see the Appendix of this Media Release.