Credit Suisse falls -4.4% » 09:4704/2204/22/21
Credit Suisse is down…
Credit Suisse is down -4.4%, or -46c to $9.93.
Credit Suisse sees residual impact of CHF0.6B from hedge fund matter in Q2 » 06:3504/2204/22/21
Credit Suisse said:…
Credit Suisse said: "Overall, we would expect market volumes to return to lower, and more normal, levels in the coming quarters. We expect a residual impact of approximately CHF 0.6 bn from the US-based hedge fund matter in 2Q21, aswe have now exited 97% of the related positions. In Wealth Management, we anticipate broadly stable net interest income and improving recurring commissions and fees benefiting from higher levels of AuM. For the Investment Bank, we would expect the second quarter to reflect a slowdown in market activity, as well as the adverse impact from the US-based hedge fund matter, particularly from the resizing of our Prime Services business. Signs of recovery in the global economy could allow us to progressively release part of our allowance for credit losses under the CECL accounting methodology that was built in the early months of the COVID-19 crisis last year. Additionally, we expect the effective tax rate to remain significantly elevated for the remainder of the year.Including the benefit of the MCN-related capital raise as well as other proactive capital actions, weintend to achieve a CET1 ratio of approximately 13% and a minimum 4% CET1 leverage ratio."
Credit Suisse reports Q1 net revenue CHF 7.57B vs. CHF 5.78B last year » 06:3304/2204/22/21
Reports Q1 adjusted…
Reports Q1 adjusted pre-tax income CHF 3.6B vs. CHF946M last year. Reports Q1 CET1 ratio 12.2% vs. 12.1% last year. Thomas Gottstein, CEO of Credit Suisse Group AG, commented: "Our results for the first quarter of 2021 have been significantly impacted by a CHF 4.4 bn charge related to a US-based hedge fund. The loss we report this quarter, because of this matter, is unacceptable. Together with the Board of Directors, we have taken significant steps to address this situation as well as the supply chain finance funds matter. Among other decisive actions, we have made changes in our senior business and control functions; we have enhanced our risk review across the bank; we have launched independent investigations into these matters by external advisors, supervised by a special committee of the Board; and we have taken several capital-related actions. We will work to ensure Credit Suisse emerges stronger. However, it is also important to recognize that our underlying 1Q21 financial performance , across all divisions, was strong, supported by solid results in Switzerland, and strong growth in APAC and investment banking. We expect that our successful MCN placement today will further strengthen our balance sheet and enable us to support the momentum in our core franchises."
Bain Capital considering making bid to acquire Toshiba, Reuters reports » 06:2704/2204/22/21
BCSF, TOSYY, TOSBF, MFG, SMFG
Bain Capital (BCSF) is…
Bain Capital (BCSF) is considering on making a bid to acquire Toshiba (TOSYY; TOSBF), Kane Wu and Scott Murdoch of Reuters reports, citing two people familiar with the matter. Bain Capital has already entered into discussion with several Japanese banks, such as Mizuho Financial Group (MFG) and Sumitomo Mitsui Financial Group (SMFG), to secure the funding needed for the acquisition, Reuters sources added. Reference Link
Credit Suisse amassed over $20B of exposure to Archegos investments, WSJ says » 19:0504/2104/21/21
Credit Suisse established…
Credit Suisse established over $20B of exposure to investments related to Archegos Capital, but the Swiss bank struggled to monitor its exposure before the fund was forced to liquidate many of its major positions, the Wall Street Journal's Emily Glazer, Maureen Farrell, and Margot Patrick report, citing people familiar with the matter. The U.S. family investment firm's stakes in a number of stocks swelled in the lead-up to its March collapse, but part of the investment bank had not fully implemented systems to keep pace with Archegos' rapid growth, the authors note. Credit Suisse CEO Thomas Gottstein and former chief risk officer Lara Warner only became aware of the exposure in the days preceding the forced liquidation, the authors say, citing people familiar with the bank. Reference Link
Credit Suisse call volume above normal and directionally bullish » 14:0504/2104/21/21
Bullish option flow…
Bullish option flow detected in Credit Suisse with 6,948 calls trading, 1.2x expected, and implied vol increasing over 1 point to 35.56%. Jan-22 10 calls and Sep-21 10 calls are the most active options, with total volume in those strikes near 4,600 contracts. The Put/Call Ratio is 0.42. Earnings are expected on April 22nd.
UBS price target raised to CHF 14 from CHF 13.70 at Barclays » 11:3504/2104/21/21
Barclays analyst Amit…
Barclays analyst Amit Goel raised the firm's price target on UBS to CHF 14 from CHF 13.70 and keeps an Underweight rating on the shares.
Credit Suisse price target lowered to CHF 12 from CHF 14 at Barclays » 11:2704/2104/21/21
Barclays analyst Amit…
Barclays analyst Amit Goel lowered the firm's price target on Credit Suisse to CHF 12 from CHF 14 and keeps an Overweight rating on the shares.
BNP Paribas price target raised to EUR 59 at Citi » 12:5304/1904/19/21
Citi analyst Azzurra…
Citi analyst Azzurra Guelfi raised the firm's price target on BNP Paribas to EUR 59 and keeps a Buy rating on the shares.
Credit Suisse Prime Brokerage co-heads to depart, WSJ reports » 12:1004/1904/19/21
John Dabbs and Ryan…
John Dabbs and Ryan Nelson, the co-heads of Credit Suisse Prime Brokerage, will leave the bank following the company's $4.7B Archegos loss, The Wall Street Journal's Margot Patrick reports, citing a company memo. Reference Link