Credit Suisse has achieved in the second quarter net profit of 170 million francs, after 302 million loss incurred in the first three months of the year. The institute, as the CEO Tidjane Thiam announced, has been able to "improve their performance and to operate profitably in a volatile environment." The result is higher than analysts’ expectations.
Credit Suisse posted a net profit of 170 million SFr, compared to 1.05 Billion in the same quarter last year. Nevertheless, it is better than the analyst consensus who expected a deepening of the yearly losses.
The good:
Costs were 8% below consensus. One of Thiam’s priority is to make the bank run more efficiently, and this is the first time we witness that his strategy is finally bearing fruit. The company is on track to meet its cost cutting target for the year of 1.7 billion francs. Wealth management, the other priority, also managed to continue attracting funds with Net New Assets up 5.4 Billion francs, despite the geo-political challenges in Europe. This is clearly helped by Credit Suisse’s global footprint.
The climate of consumption is still improved in Switzerland in June, for the third consecutive month: the UBS index rose 1.34 points, compared with 1.24 points in May, the highest level since June 2015.
According to UBS economists, the progression is mainly due to the favorable development of tourism and to a slight improvement in retail trade. The situation on the labor market remains tight, however, a factor affecting consumer confidence.
The Global Forum has evaluated positively in particular the introduction in Law Tax Administrative Assistance (LAAF) of a derogation to the notification procedure for taxpayers.
The evaluation obtained from Switzerland corresponds to that assigned to other important financial centers such as Singapore, Hong Kong and Liechtenstein.
Switzerland will benefit from Brexit: Boris Collardi, CEO of Zurich-based banking group Julius Baer is fully convinced. "I’m virtually certain that Switzerland will take advantage of Brexit" Collardi said in an interview published today by Le Temps. "In terms of capital flows, persons domiciled in the United Kingdom or who have decided to use the British platform as a point of reference questions will arise about their future status of resident and the willingness of the authorities to loom as an attractive place for business. They may decide to resort to Switzerland not to put all your eggs in one basket. "
For the first time, since the end of 2014, between the financial directors of Swiss companies optimists outnumber pessimists about the economic outlook, despite Brexit. This is what reveals a survey released today by the consulting firm Deloitte, which questioned 115 cfo. Almost a third of respondents (compared to 31% in the second quarter 2016 and 24% in the first quarter 2016) argues that global economic prospects for Switzerland are positive, while 18% are more pessimistic.
The 85-year-old financier George Soros, interviewed by the Italian newspaper Corriere della Sera, has intervened in the debate on the situation of Italian banks: "I agree that Italy represents a question mark to the euro in this moment. In particular, it is for the weakness of its banking system. It is something that Matteo Renzi must find a way to solve. I believe there is the will, certainly on the part of Germany, to be cooperative. Germany supports the efforts of Italy and this is important to get to a solution. "
The ECB announced that, in the first half of 2016, it had withdrawn from circulation about 331,000 counterfeit euro banknotes, 25% less than in the second half of 2015. The data covers the entire Eurozone.
In relation to the increasing number of genuine banknotes in circulation (over 18.5 billion in the first half of 2016), the proportion of counterfeits remains at very low levels. About 80% of counterfeits concerned the 20-euro and 50-euro banknotes.
