CoinShares International Limited Q3 FY2020 Earnings Call

· Earnings call transcript and AI-powered summary

  • Reported Net Income: CHF 546 million, down 38% YoY.
  • Reported Pre-Tax Income: CHF 803 million, down 30% YoY.
  • Adjusted Pre-Tax Income (excl. significant items): CHF 1.1 billion, up 29% YoY, or +41% at constant FX rates.
  • Return on Tangible Equity (RoTE): 5.4% in Q3, 9.8% for YTD 2020.
  • Common Equity Tier 1 (CET1) Ratio: Improved from 12.5% in Q2 to 13.0% in Q3.
  • Net New Assets: CHF 11.1 billion in Q3, 6% annualized growth. Record inflows in Private Banking and IWM.
  • Dividend: Board to recommend second half 2019 dividend approval at Nov 27 EGM (CHF 0.2776 per share). 2020 dividend accrual continues (+5% YoY target).
  • Share Buyback: Plan to restart in January 2021; program size up to CHF 1.5 billion, with intention to repurchase at least CHF 1 billion subject to market/economic conditions.

Segment and Regional Highlights

  • Investment Bank: Adjusted RoRC at 14% (9M 2020), revenues up 12% YoY in Q3. Return on equity capital improved despite CHF 1 billion in YTD credit loss provisions.
  • APAC: Q3 revenues up 29% YoY (excluding 2019 InvestLab gain), now 20% of group revenue. RoRC at 20% YTD.

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Operator: Good morning. This is the conference operator. Welcome and thank you for joining the Credit Suisse Third Quarter 2020 Results Conference Call for Analyst and Investors. [Operator Instructions]. I will now turn the conference over Kinner Lakhani, Head of Investor Relations and Group Strategy and Development, please go ahead Kinner. Kinner Lakhani: Thank you, operator. Good morning, 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 third quarter 2020 financial report, published this morning. I will now hand over to our Group CEO, Thomas Gottstein; and our Group CFO, David Mathers, who will run you through the numbers. Thomas Gottstein: Thank you, Kinner, and good morning, everyone. Thank you for joining our call this morning to discuss our third quarter 2020 results. Before I start with the slide presentation, allow me to make a few remarks about the current environment. We are carefully monitoring with heightened vigilance, the recent rise in COVID-19 cases. Since the crisis began, our first priority has been the safety and well-being of our employees, clients and stakeholders. We stand ready to work with public authorities as we did earlier this year with Switzerland's successful bridge loan program to small and medium sized businesses. I particula

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