Credit Suisse trims 4Q loss, cites upside of U.S. tax reform

Credit Suisse chief executive Tidjane Thiam

Credit Suisse chief executive Tidjane Thiam

"In the second full year of our restructuring plan, we remain focused on execution", Thiam added.

Credit Suisse shares rose 3.7 percent to 17.1 Swiss francs by 0935 GMT.

In the first six weeks of 2018, the bank had a 10 percent pickup in revenues in its Global Markets trading division and a 15 percent pickup in its Asia-Pacific trading business, as a surge in market turbulence saw activity levels rise.

Credit Suisse had flagged a 2.3 billion franc write-down for the year in December, after the USA rewrote tax law for corporations. Thiam said he "couldn't be more pleased" with that performance because it showed the last piece of his turnaround plan is in place.

Credit Suisse on Wednesday was upbeat on prospects for the year ahead, as it enters the last leg of Chief Executive Tidjane Thiam's three-year overhaul, hoping to put its third straight annual loss behind it.

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"The decisive point in our view is the very strong outlook statement" about the start of this year, said Andreas Brun, an analyst at Mirabaud in Zurich with a hold recommendation on the stock. "This year should be the first year where that (surplus) number is actually meaningful", Thiam said. In recent years, the bank has heavily incentivized investors to take more shares, not cash.

The bank's private banking arm took in 37.2 billion francs in fresh money from clients - a key indicator of future revenue.

The bank said the Asia Pacific region delivered its best quarterly results to date with adjusted pre-tax income of 239 million Swiss francs, driven by net revenues of 626 million Swiss francs.

It reported a net loss of 983 million Swiss francs ($1.05 billion) for the year and said that it paid 2.74 billion Swiss francs in income tax expenses, primarily related to the re-assessment of deferred taxes resulting from the USA tax changes.

Thiam was positive about business in the first few weeks of 2018.

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