Credit Suisse Reassures Market On Upcoming Earnings With Statement

by Trefis Team
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Credit Suisse
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Credit Suisse (NYSE:CS) released a statement last Friday that all its operating divisions had a profitable run over the second quarter of 2012. [1] The bank has been under fire since mid-2011 for issues ranging from losses in its cornerstone wealth management business, to its decision to divest assets very quickly with an adverse effect on quarterly income numbers, to the more recent directive from the Swiss central bank to shore up capital (see Credit Suisse Shares Yo-Yo On Capital Requirement Reports).

The out-of-turn press release which followed within days of another statement by its board vouching for the bank’s capital strength is clearly aimed at rebuilding investor confidence. [2] Credit Suisse is the second largest Swiss bank after UBS (NYSE:UBS).

We maintain a price estimate of $27 for Credit Suisse’s stock, which we are currently reviewing in view of a recent stock dividend issued by the bank.

See our complete analysis of Credit Suisse here

Credit Suisse’s came out with shaky performance figures for the last two quarters of 2011, with the bank also reporting its first quarterly loss since 2008 in Q4 2011. Although the numbers moved out of the red in Q1 2012, the bank was criticized for sub-par revenue figures for all its divisions as compared to peers – with the apparent neglect of operations while focusing on cutting down risky assets seen as the biggest concern.

But the bank seems intent on silencing investor doubts and critics with its announcements. The bank has, in fact, been particular in highlighting that its investment bank which has seen considerable scaling down in the last six months, will also report a profit for the quarter.

Credit Suisse is slated to release its performance results for the second quarter on 26th July.

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Notes:
  1. Statement by Credit Suisse Group on profitability in the second quarter, Credit Suisse Press Releases, Jun 29 2012 []
  2. Statement by the Board of Directors of Credit Suisse Group, Credit Suisse Press Releases, Jun 22 2012 []
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