GENEVA, Feb. 18 (Xinhua) -- Switzerland's second-biggest bank Credit Suisse on Thursday reported a net loss for the fourth quarter of 2020, saying that it plans to turn the tide by accelerating its wealth management and investment banking businesses.
The Zurich-based Swiss lender posted a 353-million-Swiss-franc (393.4 million U.S. dollars) net loss in the final quarter of 2020, it said in a statement, triggered by an increased provision for credit losses, major litigation provisions and restructuring costs.
"Despite a challenging environment for societies and economies in 2020, we saw strong underlying performance across wealth management and investment banking, while addressing historic issues. We remained focused on serving our clients around the globe and on delivering value to our shareholders," Credit Suisse CEO Thomas Gottstein commented.
"The steady execution of the strategic initiatives we announced last July supports our growth agenda and allows for further investment in our businesses," said Gottstein, who took over the helm from his predecessor Tidjane Thiam last February.
"Looking forward into 2021 and beyond, we aim to further accelerate growth in wealth management and deliver sustainable returns in investment banking," Gottstein said. "We remain strongly committed to positioning Credit Suisse as a leader in sustainability and driving digitalization and automation to generate positive operating leverage."
Credit Suisse said that several items during the quarter that had a considerable impact on the reported numbers, such as major litigation provisions of 757 million Swiss francs, restructuring and real estate disposal expenses of 78 million Swiss francs, a net adverse impact on our pre-tax income of 108 million Swiss francs from foreign exchange moves.
Its wealth management-related businesses reported net revenues of 3.1 billion Swiss francs, down 24 percent year on year in the final quarter of 2020.
Global investment banking revenues, meanwhile, increased to 2.5 billion U.S. dollars, up 19 percent year on year, benefitting from a resilient performance across products, the bank added.
UBS, Switzerland's biggest bank and the world's largest wealth manager, reported earlier in January a 54-percent jump in fourth-quarter net profit to 6.6 billion U.S. dollars, driven by an income from wealthy clients.
Global banks are reporting varying results for the fourth quarter due to the uneven impacts from the COVID-19 crisis and lockdown restrictions on stock markets and national economies. (1 Swiss franc = 1.11 U.S. dollars)