CoinShares International Limited Q1 FY2021 Earnings Call

· Earnings call transcript and AI-powered summary

  • Reported Results:
    • Net loss attributable to shareholders: CHF 252 million (vs net income of CHF 1.31 billion in Q1 2020)
    • Pretax loss: CHF 757 million, driven by CHF 4.4 billion charge related to Archegos
    • Adjusted pretax income excluding significant items and Archegos: CHF 3.6 billion (vs CHF 946 million in Q1 2020)
  • Capital Position:
    • CET1 ratio: 12.2% (targeting ~13% going forward with capital raise)
    • CET1 leverage ratio: 3.8%; Tier 1 leverage ratio: 5.5%
    • Issued CHF 1.7 billion in mandatory convertible bonds (MCNs) convertible into 203 million shares, boosting CET1 ratio by 55-60bps
    • Dividend reduced to CHF 0.10 per share for 2020; share buybacks suspended
  • Segment Performance:
    • Wealth Management: Adjusted pretax income CHF 1.6 billion, up 59% YoY; RoRC 29%; Net new assets (NNA): CHF 8.3 billion in UHNW clients
    • APAC: Adjusted pretax income up 164% YoY; Return on regulatory capital 52%
    • Investment Bank: Net revenues up 80% YoY to USD 3.9 billion, but pretax loss of USD 2.6 billion (including Archegos charge)

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Operator: Good morning. This is the conference operator. Welcome, and thank you for joining Credit Suisse Group's First Quarter 2021 Results Conference Call for analysts and investors. [Operator Instructions]. I will now turn the conference over to Kinner Lakhani, Head of Investor Relations and Group Strategy and Development. Please go ahead, Kinner. Kinner Lakhani: Thank you. Good morning, everyone. Before we begin, let me remind you of the important cautionary statements on Slides 2 and 3, including forward-looking statements, non-GAAP financial measures and Basel III disclosures. For a detailed discussion, we refer you to the Credit Suisse first quarter 2021 earnings release published this morning. Let me remind you that our first quarter 2021 financial report and accompanying financial statements for the period will be published on or around May 6. I'll now hand over to our Group CEO, Thomas Gottstein; and our Group CFO, David Mathers, who will run through the numbers. Thomas Gottstein: Thank you, Kinner. Good morning. Thank you for joining our call this morning to discuss our first quarter 2021 results. Let me begin with some comments about recent events. The significant loss in our prime services business relating to the failure of a U.S.-based hedge fund is unacceptable. In combination with the recent issues around the supply chain finance funds, I recognize that these cases have caused significant concern amongst all our stakeholders. Accountability is one of the core

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