Credit Suisse Q2 Results Impacted by Archegos and Downsizing of the Prime Brokerage Business
Credit Suisse Group AG (CSG or the Group) reported a net attributable profit of CHF 253 million in Q2 2021, compared to CHF 1.2 billion in Q2 2020. Q2 2021 results were negatively impacted by a CHF 594 million charge related to the US hedge fund Archegos and lower revenues in the Investment Bank (IB). On an adjusted basis, primarily excluding the Archegos charge and some gains on Allfunds equity investment (CHF 298 million), the Group would have reported Profit Before Tax (PBT) of CHF 1.3 billion in Q2 2021, compared to the reported CHF 813 million. We also note that PBT was resilient in all businesses except in the Investment Bank, where the Archegos loss was recorded. Management confirmed that it has exited all Archegos positions at end-Q2.
Credit Suisse is a financial services provider based in Switzerland. Co. is active as an integrated bank. Co. operates through two global divisions, Private Banking and Corporate & Institutional Banking. Co. offers comprehensive advice and a broad range of financial solutions to private, corporate and institutional clients primarily domiciled in Switzerland. Co. maintains operations in three regionally focused divisions: Swiss Universal Bank, Asia Pacific and International Wealth Management serving Western Europe, Central and Eastern Europe, Latin America and Africa.
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