Credit Suisse trims loss, cites upside of United States tax reform

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Credit Suisse's 2017 loss came on the back of a 2.3 billion franc writedown triggered by USA tax reform.

The latest-quarter results included income tax expenses of CHF2.23 billion, mainly reflecting the re-assessment of deferred tax assets with an associated tax charge of CHF2.3 billion, primarily resulting from the recent reduction in the USA federal corporate tax rate.

Credit Suisse on Wednesday was upbeat on prospects for the year ahead, as it enters the last leg of Chief Executive Tidjane Thiam's three-year overhaul, hoping to put its third straight annual loss behind it.

RBR, which previous year reported a Credit Suisse stake worth around 100 million Swiss francs ($107 million), has been pushing for a breakup of the bank and said last month the group could create "enormous" value by replacing its IT platform and cutting jobs.

Credit Suisse has managed faster growth in its wealth management business than rival UBS, growing assets under management to a record 772 billion Swiss francs ($827 billion) a year ago while cutting 3.2 billion francs in costs since 2015. This unit saw an increase of 13 percent year-on-year for its assets under management.

Following a flood of criticism from market commentators and financial firms alike, Thiam insisted that the product's demise was not a hit to the bank's reputation.

All other members of the board will stand for re-election for a further term of office of one year, Credit Suisse. Its stock rose 3% on Wednesday and has outperformed its crosstown.

"It's too early. We said that our philosophy would be to generate significant surpluses and to distribute 50 percent of that to shareholders either as a dividend or as a share buyback", he said. "We should generate 4 to 5 billion (francs) of surplus in (2018) which can then be distributed". It said market volatility has had some benefits but has hurt its calendar, as clients "wait for calmer markets in order to transact". "Now it is up to Credit Suisse to show alternatives", RBR said in a statement.

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