Third quarter 2020 results
On October 29, 2020, Credit Suisse Group presented its third quarter 2020 results to investors and analysts as well as to media.
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%1 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
* Refers to adjusted results, results excluding significant items and results on a constant foreign exchange rate basis as applicable. Results excluding 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.
1 In 3Q20 and 2Q20 leverage exposure excludes CHF 110 billion and CHF 104 billion, respectively, of central bank reserves, after adjusting for the dividend paid in 2Q20 and the planned dividend payment in 4Q20 as required by FINMA. Including cash held at central banks, our Tier 1 leverage ratio would have been 5.6% for 3Q20 and 5.5% for 2Q20.
2 Subject to market and economic conditions