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Credit Suisse says trading results positive following SNB move

Published 21/01/2015, 18:24
© Reuters. A Credit Suisse sign is pictured on a building of the bank in Geneva
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ZURICH (Reuters) - Credit Suisse said on Wednesday that it had not made losses trading foreign exchange after Switzerland's central bank suddenly abandoned a currency cap last week, causing a surge in the Swiss franc.

The shock move by the Swiss National Bank last week sent shock waves through currency trading firms around the world, wiping out many small-scale investors and the brokerages that cater to them and causing losses at major banks.

Credit Suisse, Switzerland's second-largest bank and not a major player among forex trading firms, said it was not one of them.

"Credit Suisse has recorded positive trading results over the period following the Swiss National Bank announcement, not having suffered any material trading losses relating to the foreign exchange volatility," the Zurich-based bank said in a statement.

Credit Suisse had said earlier this week that its profits remained linked to the franc's strength, without giving any specific figures, and that it would have to start charging institutional and large corporate clients for Swiss franc accounts after the SNB pushed interest rates on deposits even lower.

Like many big Swiss companies, the bank holds a considerable portion of assets, and derives revenue, in euros, dollars and other currencies, but reports in Swiss francs, making it vulnerable to adverse currency moves.

© Reuters. A Credit Suisse sign is pictured on a building of the bank in Geneva

Credit Suisse reports its fourth-quarter earnings on Feb. 12.

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