Credit Suisse says changes to result in $250 million profit boost

FILE PHOTO: The logo of Swiss bank Credit Suisse is seen at its headquarters at the Paradeplatz square in Zurich, Switzerland October 1, 2019. REUTERS/Arnd Wiegmann/File Photo

ZURICH (Reuters) – Credit Suisse (CSGN.S) on Wednesday said it expects an estimated $250 million boost to profit from changes the Swiss bank is making to how it calculates risk-weighted assets and does hedging.

“The increase in net interest income will be hedged over at least a two-year period, reducing the volatility of this incremental revenue,” Credit Suisse said in a statement. “Based on this hedging strategy and current market-implied forward rates, the increase is estimated at approximately $250 million on a full-year basis.”

The bank decided to continue to report financial results in Swiss francs.

Reporting by John Miller; Editing by Michael Shields


READ  Domino's showing signs of slowdown as pizza chain warns UK casual dining sector still under pressure


Please enter your comment!
Please enter your name here