Credit Suisse Group AG (ADR) (NYSE:CS) CEO, Tidjane Thiam, said that the bank was stronger than ever and pointed out a strong balance sheet. His comments came on the back of a significant drop in shares. As a result, its shares are trading higher in the pre-market trading activities. The bank’s clarifications have significance in the wake of Deutsche Bank AG (USA) (NYSE:DB) clarifying yesterday that it was fully equipped to pay the coupons to its investors.
No Liquidity Issues
Credit Suisse Group’s CEO said that its present common equity tier one capital ratio was 11.4% and was the strongest in its history. He said that its targeted level was 12.2% at the end of the year 2015 but was slightly missed.
Last week, the Swiss bank reported a loss for the full year following the big impairment charges recorded in its investment banking business. This was their first year taking a loss since 2008 and caused shares to drop 20%.
Very Hard To Predict
Credit Suisse Group’s CEO told its board to slash his bonus by 25 – 50%. He said that the developments happening in the markets are hard to predict. He pointed out that most of the people will advise that the economy was still ok on the global level but that was not reflected in the market and stocks performances. On the contrary, the markets are pricing a big recession in the world.
Not only Credit Suisse Group, but most of the banks in the Europe, as well as, the United States were trading downward since the beginning of the year. Some analysts have blamed the low-interest rates and China’s slowdown, weak oil prices, poor economic growth, and the possibility of increased defaulters.