Thread by @gamesblazer06

$CS reports a €1.7B Loss..Delta v Street mainly coz of Litigation, Restructuring & AllFunds equity.. but Wealth weaker given lower Market Levels & Client De-Leveraging but Gross Margins steady 83bps.. Investment Bank -40% YoY, FICC -28% YoY, Equity Flat YoY, Cap Mkts -96% YoY

https://twitter.com/gamesblazer06/status/1519340859749060608

Swiss Universal Bank Rev +3% YoY driven by higher NII.. Credit remains Solid w an Asset Light Biz w only a small CHF96MM provision…High Yield small US$245MM MTM loss with exposure down to $5.9B..Solid 13.5% CET1 Capital & 6.1% Leverage Ratio…Liquidity is Off Charts w 191% LCR.

$CS tangible equity up +CHF1.3B QoQ despite loss… Tangible Equity has gone up every quarter since Archegos as the Balance Sheet continues to De-Lever.. Asset Light w Swiss Resi LTVs only 45%.. Tangible Leverage down another 1.5 turns to 18.0x Ex DTAs in 2Q22.
$CS

$CS Tangible Equity: Keeps Going Up

2Q22: CHF42.5B
1Q22: CHF41.2B
4Q21: CHF40.8B
3Q21: CHF39.6B
2Q21: CHF38.7B

$CS at 0.3x TBV = #MarginForError
Levered at only 18x tangible equity Ex DTAs…In Recession.. Bendable not Breakable imho.