We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Credit Suisse (CS) Increases Bonus to Retain Employees
Read MoreHide Full Article
In an effort to retain talent, Credit Suisse Group AG increased its bonus pool by 6%. The primary objective behind this is to prevent attrition in Asia and its investment banking division.
Per the company’s 2016 annual report, its full-year bonus amounted to 3.09 billion francs ($3.1 billion).
Besides this, the company’s CEO Tidjane Thiam’s pay for his first full year on the job surged to 11.9 million francs ($12 million). This comprises 8.2 million francs cash and shares, over and above his fixed pay of 3.7 million francs. Also, this amount is higher than 4.57 million francs that he had received for the first six months of his service in 2015.
On the contrary, employees of other European banks suffered pay cuts in 2016. Among these is Deutsche Bank AG (DB - Free Report) , which slashed its 2016 bonus pool by nearly 80%. Also, UBS Group AG (UBS - Free Report) paid the lowest bonus amounts in four years.
Notably, Credit Suisse made these efforts despite incurring the second consecutive annual loss in 2016. The loss deteriorated because of Credit Suisse’s agreement to settle the residential mortgage-backed securities (RMBS) matter with the National Credit Union Administration Board (NCUA).
In order to resolve the issue, the company increased its litigation provisions by 300 million francs, which led to an additional after-tax charge of 272 million francs. Also, because the agreement was reached at after the reporting period, the company had to update its 2016 results. After accounting for this adjustment, the company’s net loss attributable to shareholders rose to 2.7 billion francs.
Further, its common equity Tier 1 capital ratio (CET1) decreased to 11.5% from 11.6% after the adjustment.
The bank said that maintaining a solid capital position continues to be a priority and hence reiterated plans of selling part of its Swiss unit. Its chairman Urs Rohner said, “We are now in a position where we have optionality in terms of how we execute, and we expect the capital build-up will shift more and more to capital accretion out of our businesses.”
Shares of the company gained 1.7% in the last one year, underperforming the 22.9% growth for the Zacks categorized Banks - Foreign industry.
However, Credit Suisse carries a Zacks Rank #2 (Buy) based on positive estimate revisions for the current year over the last 60 days.
Another stock worth considering in the finance space is Evercore Partners Inc. (EVR - Free Report) . It witnessed an upward earnings estimate revision of 6% for the current year, in the last 60 days and its share price increased 54.1% in the last six months. Evercore Partners currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017? Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Credit Suisse (CS) Increases Bonus to Retain Employees
In an effort to retain talent, Credit Suisse Group AG increased its bonus pool by 6%. The primary objective behind this is to prevent attrition in Asia and its investment banking division.
Per the company’s 2016 annual report, its full-year bonus amounted to 3.09 billion francs ($3.1 billion).
Besides this, the company’s CEO Tidjane Thiam’s pay for his first full year on the job surged to 11.9 million francs ($12 million). This comprises 8.2 million francs cash and shares, over and above his fixed pay of 3.7 million francs. Also, this amount is higher than 4.57 million francs that he had received for the first six months of his service in 2015.
On the contrary, employees of other European banks suffered pay cuts in 2016. Among these is Deutsche Bank AG (DB - Free Report) , which slashed its 2016 bonus pool by nearly 80%. Also, UBS Group AG (UBS - Free Report) paid the lowest bonus amounts in four years.
Notably, Credit Suisse made these efforts despite incurring the second consecutive annual loss in 2016. The loss deteriorated because of Credit Suisse’s agreement to settle the residential mortgage-backed securities (RMBS) matter with the National Credit Union Administration Board (NCUA).
In order to resolve the issue, the company increased its litigation provisions by 300 million francs, which led to an additional after-tax charge of 272 million francs. Also, because the agreement was reached at after the reporting period, the company had to update its 2016 results. After accounting for this adjustment, the company’s net loss attributable to shareholders rose to 2.7 billion francs.
Further, its common equity Tier 1 capital ratio (CET1) decreased to 11.5% from 11.6% after the adjustment.
The bank said that maintaining a solid capital position continues to be a priority and hence reiterated plans of selling part of its Swiss unit. Its chairman Urs Rohner said, “We are now in a position where we have optionality in terms of how we execute, and we expect the capital build-up will shift more and more to capital accretion out of our businesses.”
Shares of the company gained 1.7% in the last one year, underperforming the 22.9% growth for the Zacks categorized Banks - Foreign industry.
However, Credit Suisse carries a Zacks Rank #2 (Buy) based on positive estimate revisions for the current year over the last 60 days.
Another stock worth considering in the finance space is Evercore Partners Inc. (EVR - Free Report) . It witnessed an upward earnings estimate revision of 6% for the current year, in the last 60 days and its share price increased 54.1% in the last six months. Evercore Partners currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017? Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>