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The large Swiss bank has to write off nearly US $ 500 million on a stake in the United States.
High write-offs towards the end of the year: Credit Suisse has to make adjustments.
Photo: Urs Flüeler (Keystone / Symbolbild)
Credit Suisse has to make a big payback in the fourth quarter. Big changes are taking place at the investment firm York Capital Management, in which the large bank participates.
Due to the announcements by York Capital Management, a downgrade of the minority stake, which the bank has owned since 2010, will be necessary, CS announced Tuesday. The amount is currently estimated at around US $ 450 million; however, it will be finalized by the end of the year.
This adjustment in the bank’s asset management area is likely to reduce the group-wide basic capital ratio (CET1) by around 7 basis points. But that does not change the current guidance for repatriation of capital and dividends in 2020 and 2021. In the third quarter, the key figure reached 13.0 percent.
York Capital Management (York) has informed investors of a major change in strategy, according to the announcement. This is how the European hedge fund business should be run, instead the company wants to focus on private equity, private debt and CLOs (secured loan obligations). The APAC business is expected to be spun off as its own new, independent hedge fund, in which Credit Suisse will continue to participate.
