CoinShares International Limited Q2 FY2020 Earnings Call
· Earnings call transcript and AI-powered summary
- Group Net Income: CHF 1.2 billion, up 24% YoY — highest Q2 result in a decade.
- Pretax Income: CHF 1.6 billion, up 19% YoY.
- Revenue: CHF 6.2 billion, up 11% YoY. Notable growth in Investment Banking & Capital Markets (+61%) and Global Markets (+33%).
- Return on Tangible Equity (RoTE): 11% for Q2 and 12% for H1 2020 (vs 10.4% for trailing 12 months).
- CET1 Ratio: 12.5% in Q2 vs 12.1% in Q1.
- CET1 Leverage Ratio: 4.5%, up 30bps QoQ.
- Liquidity Coverage Ratio (LCR): 196%, increased from 182% in Q1.
- Credit Provisions: CHF 296M in Q2, CHF 864M for H1. Total allowance of CHF 2B on balance sheet.
- Adjusted Operating Expenses Guidance: CHF 16B–CHF 16.5B for FY 2020.
- Tangible Book Value per Share: CHF 17.03, up 7% YTD.
Segment Performance Highlights
- Swiss Universal Bank (SUB): Pretax income of CHF 687M (+5% YoY); cost/income ratio dropped to 52%. Loan quality remains strong, with low credit loss provisioning.
- International Wealth Management (IWM): Pretax income CHF 348M (-22% YoY). FX headwinds impacted revenue, but net new assets remained positive at CHF 1.8B in PB and CHF 4.1B in AM.
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