Credit Suisse Group with a net loss CHF 5,83 billion. Is it good time to buy banks?

04.02.2016 / 13:15

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The Swiss bank reported a net loss of 5.8 billion Swiss francs for the fourth quarter after writing down a chapter of its history in which the Swiss lender sought to compete with the biggest investment banks on Wall Street.

The loss stemmed from a CHF 3.8 billion goodwill impairment charge primarily related to its acquisition of US investment bank Donaldson, Lufkin & Jenrette in 2000, net organizational expenses of CHF 355 million and legal costs amounting to CHF 564 million.

CEO Tidjane Thiam said for CNBC: only time – most likely a couple of quarters – would help to restore calm on the markets. Now, however, was a good time to buy banks...

The latest report is the first to reflect Credit Suisse's new structure under Chief Executive Tidjane Thiam, who took over in July and announced his strategic plans for the bank in October. Those plans include bolstering wealth management, particularly in regions such as Asia, while reducing the resources directed to its investment bank.

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Credit Suisse Group with a net loss CHF 5,83 billion. Is it good time to buy banks?

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