Credit Suisse Group AG yesterday said that business in the fourth quarter so far has continued the trend of the previous three months, when the lender got a boost from advising on deals while trading revenue trailed peers.
The investment bank “continues to perform well,” with revenue higher than in last year’s fourth quarter, Credit Suisse said in a statement on its investor day.
In wealth management, stronger transactional business especially in Asia is offsetting headwinds from the stronger Swiss franc and negative interest rates, it said.
Photo: Reuters
The bank confirmed a target for a return on tangible equity of 10 to 12 percent in the medium-term and for capital distributions, while cautioning that reaching that goal next year would depend on provisions for bad loans.
Credit Suisse chief executive Thomas Gottstein is seeking to turn the corner after a series of setbacks overshadowed his first year in office, from loan losses to questionable dealings for a large client.
While he simplified the organizational setup, including at the securities unit, and started a review of the asset management business, he has been unable to stop a constant flow of bad news.
In the latest hit, an impairment on a hedge fund stake and potentially surging legal provisions threaten to affect fourth-quarter earnings.
Since Gottstein combined the investment banking and trading activities in one unit, the business has shown mixed results, with advisory doing well in the third quarter, while fixed-income trading — the largest revenue contributor — trailed peers.
The bank did not give any details on its trading performance so far this quarter.
The heads of the two largest US lenders, JPMorgan Chase & Co and Bank of America Corp, last week told investors that their investment-banking and trading divisions would notch a strong performance in the fourth quarter as economic activity stayed fairly resilient.
At Deutsche Bank AG, fixed-income trading grew 10 percent in October and 23 percent last month.
The COVID-19 pandemic also exposed some weaknesses in Credit Suisse’s asset management model, a business that is typically a source of stable income with little risk for the bank, but which suffered a number of fund implosions this year as well as a scandal involving one of its largest clients, Softbank Group Corp.
Credit Suisse said that it expects a significant turnaround at the unit next year.
SEMICONDUCTORS: The German laser and plasma generator company will expand its local services as its specialized offerings support Taiwan’s semiconductor industries Trumpf SE + Co KG, a global leader in supplying laser technology and plasma generators used in chip production, is expanding its investments in Taiwan in an effort to deeply integrate into the global semiconductor supply chain in the pursuit of growth. The company, headquartered in Ditzingen, Germany, has invested significantly in a newly inaugurated regional technical center for plasma generators in Taoyuan, its latest expansion in Taiwan after being engaged in various industries for more than 25 years. The center, the first of its kind Trumpf built outside Germany, aims to serve customers from Taiwan, Japan, Southeast Asia and South Korea,
Gasoline and diesel prices at domestic fuel stations are to fall NT$0.2 per liter this week, down for a second consecutive week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) announced yesterday. Effective today, gasoline prices at CPC and Formosa stations are to drop to NT$26.4, NT$27.9 and NT$29.9 per liter for 92, 95 and 98-octane unleaded gasoline respectively, the companies said in separate statements. The price of premium diesel is to fall to NT$24.8 per liter at CPC stations and NT$24.6 at Formosa pumps, they said. The price adjustments came even as international crude oil prices rose last week, as traders
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), which supplies advanced chips to Nvidia Corp and Apple Inc, yesterday reported NT$1.046 trillion (US$33.1 billion) in revenue for last quarter, driven by constantly strong demand for artificial intelligence (AI) chips, falling in the upper end of its forecast. Based on TSMC’s financial guidance, revenue would expand about 22 percent sequentially to the range from US$32.2 billion to US$33.4 billion during the final quarter of 2024, it told investors in October last year. Last year in total, revenue jumped 31.61 percent to NT$3.81 trillion, compared with NT$2.89 trillion generated in the year before, according to
PRECEDENTED TIMES: In news that surely does not shock, AI and tech exports drove a banner for exports last year as Taiwan’s economic growth experienced a flood tide Taiwan’s exports delivered a blockbuster finish to last year with last month’s shipments rising at the second-highest pace on record as demand for artificial intelligence (AI) hardware and advanced computing remained strong, the Ministry of Finance said yesterday. Exports surged 43.4 percent from a year earlier to US$62.48 billion last month, extending growth to 26 consecutive months. Imports climbed 14.9 percent to US$43.04 billion, the second-highest monthly level historically, resulting in a trade surplus of US$19.43 billion — more than double that of the year before. Department of Statistics Director-General Beatrice Tsai (蔡美娜) described the performance as “surprisingly outstanding,” forecasting export growth
RSS