CoinShares International Limited Q2 FY2021 Earnings Call

· Earnings call transcript and AI-powered summary

  • Resilient Result Despite Challenges: Credit Suisse reported a Q2 2021 pretax income of CHF 830 million and net income attributable to shareholders of CHF 253 million. The group’s adjusted pretax income, excluding Archegos and significant items, was CHF 1.3 billion.
  • Year-over-Year Comparison: Adjusted pretax income in Q2 2021 was down 11% compared to CHF 1.48 billion in Q2 2020; however, the H1 2021 adjusted pretax income of CHF 4.9 billion was the best first-half result in six years, despite the CHF 5 billion Archegos loss.
  • Capital Position Strengthened: CET1 ratio improved to 13.7% (from 12.2% in Q1), CET1 leverage ratio rose to 4.2%, and Tier 1 leverage ratio to 6.0%.
  • Archegos Impact: Total losses from Archegos amounted to CHF 5 billion. An independent report identified lapses in risk control and management, though no fraudulent conduct or system failure was found. CHF 70 million in compensation was clawed back; 9 staff terminated, 14 disciplined.
  • Supply Chain Finance (Greensill): Cash returns to investors reached 66% of NAV (as of Feb 25). Over 90% expected recovery in non-focus areas. Insurance claims are underway though delayed due to protocol.

Continue Reading

Unlock the full AI-powered summary with key highlights, financial performance, and analyst Q&A.

Upgrade to Professional
Kinner Lakhani: Thank you, Sharon. Good morning, everyone. So 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 2021 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 through the numbers. Thomas Gottstein: Thank you, Kinner. Good morning. Thank you for joining our call to discuss our second quarter and first half 2021 results. As part of my introduction, I would like to make a few comments. Firstly, this has been an incredibly challenging first half of the year for our bank and for all our stakeholders, overshadowed by the Archegos and supply chain finance fund matters. We are taking these events very seriously and are determined to learn all the right lessons. We firmly believe we can and will emerge stronger from these events. Secondly, we have taken action. We have taken action to address many of the issues, and we will continue to do so. Regarding Archegos, we have exited all the remaining positions in early June and today have released the independent investigation report. We have proactively derisked our Prime Services business and overachieved the goals we set ourselves in the first quarter to reduce RWA and leverage exposure in the Investment Bank. We

Continue Reading

Unlock the full earnings call transcript with speaker labels and formatted dialogue.

Upgrade to Professional