CoinShares International Limited Q3 FY2022 Earnings Call

· Earnings call transcript and AI-powered summary

  • Headline Results: Reported net loss of CHF 4.03 billion, driven primarily by a CHF 3.7 billion impairment of deferred tax assets (DTA) tied to strategic review outcomes.
  • Adjusted Pre-tax Loss: CHF 92 million, compared to a pre-tax income in prior quarters. Key drivers included weak performance in Investment Banking and impairments in Wealth Management.
  • Capital:** CET1 ratio decreased to 12.6% (down 90 bps QoQ), primarily from DTA impairment (48 bps), pretax loss (12 bps), and RWA increase (11 bps). A CHF 4 billion capital raise will increase pro forma CET1 ratio to approximately 14%.
  • Litigation Provisions: CHF 245 million taken during the quarter, including CHF 178 million in large legacy cases. Major settlements include RMBS case in New Jersey and a French case, reducing potential future liabilities by 19% QoQ.

Divisional Performance (Adjusted Figures)

  • Wealth Management: CHF 78 million pretax income, down 80% YoY. Revenues declined 14% YoY. Included CHF 145 million in IT-related impairments. CHF 6.4 billion net outflows in Q3; significant additional outflows in October not yet reversed.

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Kinner Lakhani: Welcome everyone. Thank you for joining our Third Quarter 2022 Results Call. So we have a busy schedule ahead of us with our third quarter earnings presentation, followed by the 2022 strategy update presentation, which as you know begins at 9:30 GMT. So please note that this call will very much be focused on earnings and I kindly ask you to respect that in the Q&A that follows. Before we begin, please note all the legal disclaimers in the presentation and let me remind you the important cautionary statements including in relation to forward-looking statements, non-GAAP financial measures and Basel III disclosures. For a detailed discussion of our results, we refer you to the Credit Suisse third quarter 2022 earnings release published this morning. Let me remind you that our third quarter financial report and the accompanying financial statements for the period will be published in early November. I will now hand over to our Group CEO, Ulrich Körner; and our Group CFO, Dixit Joshi, who will run through our numbers. Ulrich Körner: Thank you very much, Kinner and thank you all for joining today. We appreciate your participation and engagement. For the purpose of this call, we intend to focus on our third quarter performance only, and I will share some brief remarks before handing over to our new Chief Financial Officer, Dixit Joshi. We will discuss the outcomes of our strategic review later today, starting at 9:30 London time. I hope that many of you on this call

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