Credit Suisse posts third-straight annual loss

Tidjane Thiam 6

Credit Suisse boss defends bank's role in collapsed trading product

Credit Suisse is defending a controversial financial product it issued that played a role in the staggering market losses last week.

As with other European banks, Credit Suisse took a hit from the US tax overhaul its 2.3 billion Swiss francs ($2.5 billion) charge knocked it into the red for the full-year reported Wednesday. Its stock rose 3% on Wednesday and has outperformed its crosstown.

All other members of the board will stand for re-election for a further term of office of one year, Credit Suisse. "This year should be the first year where that (surplus) number is actually meaningful", Thiam said. The Swiss bank is among the best performers in the index over the past six months, with a gain of more than 16 percent. The Swiss bank flagged a sharp pickup of trading income this year, especially in Asia. The bank attributed this drop to lower fixed income and equity sales as well as lower trading revenue at the markets business.

But the meltdown of one of the bank's volatility products last week and two recent USA lawsuits over activities before and just after Thiam took charge have raised questions about how far his strategy has taken hold.

"2017 was a crucial year of delivery in our three-year restructuring plan, after 2016, which was a year of deep and radical reorganisation and restructuring", said Credit Suisse CEO, Tidjane, Thiam.

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Fourth-quarter revenue was essentially flat at 5.19 billion francs, while pre-tax profit came in at 141 million francs, reversing a pre-tax loss of more than 2.2 billion francs a year earlier.

To be sure, this isn't the first time that Thiam has been optimistic about the prospects of Credit Suisse's trading units.

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

Investors say Credit Suisse's transformation is moving along.

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