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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Kinner Lakhani: Good morning. Thank you, operator. Welcome, everyone. Before we begin, let me remind you of the important cautionary statements on Slides 2 and 3, including in relation to forward-looking statements, non-GAAP financial measures and Basel III disclosures. For a detailed discussion, we refer you to the Credit Suisse second quarter 2020 financial report, other published materials and the accompanying financial statements for the period published this morning. I will now hand you over to Group CEO, Thomas Gottstein; and our Group CFO, David Mathers, who will run you through the numbers and strategic initiatives. Thomas Gottstein: Thank you, Kinner. Good morning, everyone. Thank you for joining our call this morning to discuss our second quarter 2020 results, my first full quarter since becoming Group CEO on the 14th of February. Before I start with the slide presentation, allow me to make a few remarks. Our first priority was and remains the safety and well-being of our employees, clients and communities in which we operate around the world. I want to thank all our roughly 48,000 employees for what they have achieved over the last few months in very difficult circumstances as evidenced by our second quarter 2020 figures today showing the highest second quarter net income attributable to shareholders in a decade and double-digit return on tangible equity. I also want to thank my colleagues on the Executive Board and on the Board of Directors for their partnership,

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