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Published: Thu, February 15, 2018
Economy | By Melissa Porter

Credit Suisse Loss Narrows

Credit Suisse Loss Narrows

Credit Suisse said it will buy back the VelocityShares Daily Inverse VIX Short-Term ETN, known by its trading symbol XIV. Cost cuts give it a good base to benefit from private-equity deal making and any further pickup in action among its superwealthy clients.

Credit Suisse posted its third consecutive annual loss on Wednesday, highlighting writedowns in the fourth quarter of 2017 due to the overhaul of the USA tax system. But investors are rewarding its improved ability to profit from increases in revenues.

The stock was up by 2.5 percent in early European trading on Wednesday. "In 2018, we will remain focused on disciplined execution and on delivering value for our clients and shareholders for the final year of our restructuring plan".

Credit Suisse Group AG's trading revenue rebounded at the start of the year along with market volatility, in what Chief Executive Officer Tidjane Thiam said was evidence that the investment bank was alive and well after two years of cost reductions. "Now it is up to Credit Suisse to show alternatives", RBR said in a statement.

Sitohang said, however, that in the first six weeks of 2018, Credit Suisse's Asia-Pacific markets business saw revenues rise by over 15 per cent compared to the same period in 2017, thanks to increased market volatility.

"The most pleasing thing for me has been to see that our franchise is intact and actually vibrant", Thiam said in an interview with Francine Lacqua on Bloomberg Television.

Net revenue was CHF5.19 billion, compared to CHF5.18 billion in the prior year.

It reported a loss of 983 million Swiss francs (851 million euros $1.05 billion) in 2017, down from 2.7 billion Swiss francs the previous year. Yet many of Credit Suisse's markets businesses went on to struggle throughout 2017 as volatility declined. The bank posted a loss of 2.1 billion Swiss francs in its fourth quarter due to the writedown, better than the 2.6 billion franc loss reported this time past year.

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