2023-09-29 19:38:57
Published on September 29, 2023 at 9:38 p.m. Modified on September 29, 2023 at 9:42 p.m.
Credit Suisse made a net profit of 2.2 billion francs in the first six months of the year, according to its rhalf-yearly contribution published Friday morning. The bank had lost 1.974 billion during the same period of 2022. This profit, earned while Credit Suisse was going through a period of turbulence concluded by its takeover by UBS on March 19, is largely explained by the amortization of its AT1 bonds. This positive figure does not reflect its operational performance, which remains in deficit.
These bonds had a face value of around 16 billion francs. When Credit Suisse was taken over by UBS, Finma, the Financial Markets Authority, ordered the cancellation of these rather unusual debt securities. These bonds are also called “coco”, for contingent convertible, which means that they can also be transformed into capital if necessary. Their value having been brought to zero, Credit Suisse therefore made an accounting gain exceeding 14 billion francs.
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