DJ Credit Suisse 2Q Beat Expectations -- Earnings Review

By Pietro Lombardi

Credit Suisse Group AG on Thursday delivered better-than-expected results for the second quarter. Here's what you need to know:

NET PROFIT: Net profit for the period rose 24% to 1.16 billion Swiss francs ($1.27 billion), the Swiss bank said, beating expectations of a net profit of CHF764 million, according to a consensus forecast provided by the bank.

REVENUE: Revenue rose 11% to CHF6.19 billion, above expectations of CHF5.61 billion.

WHAT WE WATCHED:

-PROVISIONS: The bank set aside CHF296 million in provisions against potential losses from borrowers, much lower than the CHF445 million analysts had forecast. In the same period last year, provisions were just CHF25 million.

-IBCM AND GLOBAL MARKETS: Pretax income rose sharply at the bank's global markets unit and at its investment banking and capital markets division.

-TARGETS: Credit Suisse cut its mid-term profitability target. The bank now targets a return on tangible equity of 10% to 12% in the medium term, having previously guided for a ROTE above 12%.

Write to Pietro Lombardi at pietro.lombardi@dowjones.com; @pietrolombard10

(END) Dow Jones Newswires

July 30, 2020 05:04 ET (09:04 GMT)

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