Credit Suisse Group AG (NYSE:CS)
Q4 2020 Earnings Call
Feb 18, 2021, 2:15 a.m. ET
- Prepared Remarks
- Questions and Answers
- Call Participants
Good morning. This is the conference operator. Welcome, and thank you for joining Credit Suisse Group’s Full year and Fourth Quarter 2020 Results Conference Call for analysts and investors. [Operator Instructions] and the conference is recorded. [Operator Instructions]. I will now turn the conference over to Kinner Lakhani, Head of Investor Relations and Group Strategy and Development. Please go ahead, Kinner.
Kinner Lakhani — Head of Group Strategy & Development
Thank you, operator. Before we begin, let me remind you of the important cautionary statements on slides two and three, 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 Fourth Quarter 2020 Earnings Release, published this morning. Let me remind you that our 2020 annual report and audited financial statements for the year will be published on or around March 18, 2021. 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 — Chief Executive Officer
Thank you, Kinner. Good morning, everyone. Thank you for joining our call this morning to discuss our fourth quarter and full year 2020 results. Let me begin, as I have since I became group CEO one year ago with some comments on the current environment. We continue to monitor with full vigilance, the elevated levels of COVID-19 cases in Switzerland and all the countries around the globe where we operate. In my first year, I’m very proud of what Credit Suisse has delivered for clients, employees and shareholders. For clients, we took a leading role in establishing Switzerland’s successful lending facility last year and help clients around the globe, navigate turbulent economies and markets. For our employees, we created a safe and productive environment while moving to a mostly digital footprint in a short period of time. Our success is reflected in a survey last year that showed more than 90% of employees felt well supported and well informed by management. For shareholders, we paid the full dividend with respect to 2019 and reinitiated our 2021 share buyback program early this year in January. We stand ready to do our part for our communities and economies, be it here in Switzerland or elsewhere, through lending initiatives, donation programs and other measures. In the challenging 2020 environment, we delivered solutions for our clients to help them seize opportunities and manage risks in turbulent times. We addressed historic issues and invested in our businesses. We launched sustainability, research and investment solutions, SRI, to put sustainability at the heart of our offering to private, corporate and institutional clients.
We entered 2021 with strong momentum, as evidenced by our best January in a decade. Pretax income for the month was up year-on-year across all divisions. Investment banking revenues are up substantially from the same period in 2020. Notwithstanding the fragility of the global economy due to the pandemic, the growth strategy that I will discuss with you today puts us in an excellent position to build on our progress and to achieve our midterm ambitions that we set out at our investor update in December and which we reaffirm today. With that, let me turn to the slides. Let me start with slide four. Our step-by-step growth strategy builds on the work completed in the last few quarters. This is supported by a strong balance sheet that allows us to invest by maintaining our disciplined approach to capital distribution. A few weeks ago, in early January, we announced that we would have to record a pre-tax loss in the fourth quarter. This is primarily the result of having addressed historic and other issues. These included major litigation provisions of CHF757 million, largely related to RMBS cases and impairment relating to York of CHF414 million within our asset management business. As a result, we recorded a fourth quarter pre-tax loss of CHF88 million, and the net loss attributable to shareholders of CHF353 million. For the full year 2020, we reported pre-tax income of CHF3.5 billion and net income attributable to shareholders of CHF2.7…