A pre-tax loss at Credit Suisse's main trading arm was a blot in Credit Suisse's third-quarter report. The bank quietly flagged an even worse surprise for the current quarter's trading.
A $21 million pre-tax loss in the Swiss bank's trading unit in the third quarter irked investors. The current period looks even worse, according to a hint buried deep in reams of slides by CEO Tidjane Thiam on Credit Suisse's investor day.
The global markets unit will record a fourth-quarter loss of $92 million, news agency «Bloomberg» calculated based on nine-month figures and Thiam's full-year prediction. The hidden admission is emblematic of the apparent unwillingness of Credit Suisse to simply play it straight with its numbers, as finews.asia criticized on Wednesday.
Brutal Correction
It isn't the first time the Brian Chin-led unit has overshadowed generally healthy prospects for Credit Suisse's wealth management arm. On Wednesday, Credit Suisse warned that net revenues in its Asian trading arm would drop by as much as 10 percent for the year.
«We see lower activity both in global markets and Asia Pacific markets,» Thiam told «Bloomberg». «More in APAC markets – you have seen the correction in Shanghai and Shenzhen, which is actually quite brutal. That leads to lower activity.»
