Credit Suisse responded more nimbly to its recent crisis than German rival Deutsche Bank, according Alberto Tocchio. The head of Heron Asset Management tells finews.com what to look out for in upcoming Q1 results.
Like Deutsche Bank, Credit Suisse also faced a deep crisis in recent years. How has Credit Suisse evolved compared to Deutsche Bank, and where does it stand today?
Credit Suisse has been another name which has underperformed the market year-to-date and is currently down 8.5 percent but I believe the story is radically different and the performance of last year shows it all – Credit Suisse rose 23 percent last year, while Deutsche Bank tumbled 23 percent.
Discipline on the costs has been great and there is still high confidence to meet cost targets for 2018. Given the recent comments from CEO Tidjane Thiam speaking to «CNBC» there should be no big surprises for first-quarter numbers. He stated that the bank will be «very profitable» once they have finished winding down restructured units at the end of this year.
«Some saying Credit Suisse seen material losses»
The focus will instead be on the exchange-traded note products where there has been quite a bit of confusion on the market as some are saying that Credit Suisse has seen some material losses from the product which has been closed towards the end of February because of the excessive high volatility/return. It is our understanding that Credit Suisse created but didn’t distribute the product which should limit any liability for the company.
What did Credit Suisse do differently compared to Deutsche Bank?
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