Banks around the world announced their First Quarter Results 

Banks around the world with international operations issued press release to annouce their Results for the First Quarter of 2015. Highlights for Credit Susisse, BNP Paribas, Royal Bank of Scotland and Bank of China are as follow:

Credit Suisse
As stated in its financial report, Credit Suisse indicates the Swiss National Bank’s decision in January to discontinue the minimum exchange rate of the Swiss franc against the euro and introduce negative short-term interest rates, as a factor that significantly altered the market environment for a number of Swiss companies.

• Net income attributable to shareholders was CHF 1.1 billion, reflecting an increase of 23% compared to the first quarter
• of 2014.
• The Private Banking & Wealth Management results benefitted from a particularly strong performance in bank’s Wealth Management Clients business with improved margins and profitability.
• Relatively stable results in Corporate & Institutional Clients.
• Asset Management had lower revenues reflecting increased seasonality.
• Investment Banking results reflected increased sales and trading revenues, while the bank continued to significantly reduce leverage exposure during the quarter. Additionally, the bank made further progress in winding down our non-strategic units.

The bank stated that The Asia Pacific region continues to be a strong driver of growth in both divisions, contributing 16% to the overall revenues of Credit Suisse.

BNP Paribas
The BNP Paribas Group posted a good overall performance this quarter thanks to the good sales and marketing drive and the strong growth of its operating divisions. In the Eurozone, demand for credit is gradually recovering in a context of economic growth picking up. In America and in Asia, the Group enjoyed good business development.

• Revenues totalled 11,065 million euros, up 11.6% compared to the first quarter 2014. They included this quarter the impact of an exceptional +37 million euro Own Credit Adjustment (OCA) and own credit risk included in derivatives (DVA). The one-off revenue items for the first quarter 2014 totalled 237 million euros.
• The revenues of the operating divisions were up sharply due in particular to the very good performance of CIB and of the specialised businesses, the positive impact of acquisitions made in 2014 and favourable foreign exchange effects. The revenues of the operating divisions thus rose by 13.7% compared to the first quarter 2014: +2.3% for Domestic Markets1, +20.3% at International Financial Services and +23.7% for CIB.
• Operating expenses, at 7,808 million euros, were up by 14.9%. They included the one-off impact of Simple & Efficient transformation costs and the restructuring costs of the acquisitions made in 2014 which totalled 130 million euros (142 million euros in the first quarter 2014). They also included a 245 million euro impact (2) for the first contribution to the Single Resolution Fund whose entire contribution for 2015 was fully booked this quarter based on the IFRIC 21 “Levies” interpretation.
• Pre-tax income was thus up 19.8% compared to the first quarter 2014, at 2,552 million euros. For its part, the pre-tax income of the operating divisions was up by 38.6%.
• The operating expenses of the operating divisions were up by 10.7%, resulting in a largely positive jaws effect (3 points). They were up 1.1% in Domestic Markets1, 20.6% in International Financial Services and 13.4% in CIB.

Royal Bank of Scotland
RBS reports an attributable loss of £446 million for the first quarter of 2015, but makes good progress towards its stated 2015 targets, with further steps to build a bank that is stronger, simpler and better for both customers and shareholders.

• An attributable loss of £446 million for the first quarter of 2015 included restructuring costs of £453 million and £856 million of litigation and conduct charges. A net charge of £122 million was recorded in relation to the reclassification of the International Private Banking business to disposal groups, together with a net loss within discontinued operations of £320 million reflecting the fall in the market price of Citizens shares during the quarter.
• Operating profit totalled £325 million, compared with profit of £1,283 million in Q1 2014 and a loss of £375 million in Q4 2014. Adjusted operating profit(2) was £1,634 million, up 16% from Q1 2014. These results continued to benefit from generally benign credit conditions, with a £91 million net release of impairment provisions, and from continuing reductions in operating costs.
• UK franchises have seen volume growth, with increased operating profits in both Personal & Business Banking (PBB) and Commercial & Private Banking (CPB), compared with Q4 2014 supported by benign credit conditions. Corporate & Institutional Banking (CIB) has made a good start on reshaping its business following its strategy announcement in February 2015, beginning the wind-down of legacy activities and cementing management structures for the continuing business.
• Tangible net asset value per ordinary and equivalent B share was 384p at 31 March 2015, compared with 387p at 31 December 2014.

Bank of China
According to International Financial Reporting Standard (“IFRS”), the Bank of China recorded a profit after tax of RMB47.769 billion and profit attributable to equity holders of RMB45.838 billion, increasing 1.21% and 1.05% year-on-year respectively.

• As at the end of March 2015, the Bank’s total assets, liabilities and equity amounted to RMB16.02 trillion, RMB14.75 trillion and RMB1.27 trillion, increased 5.03%, 4.83% and 7.49% respectively from the prior year-end. The ROA and ROE recorded 1.22% and 16.93% respectively. The Bank successfully issued the Second Tranche Domestic Preference Shares of RMB28 billion and completed the conversion of A-share convertible bonds with accumulated conversion ratio of 99.94%. Its capital adequacy ratio and tier 1 capital adequacy ratio increased to 14.13% and 11.85% respectively.
• As at the end of March 2015, the Bank’s loans and advances to customers amounted to RMB8.80 trillion, increasing RMB319.119 billion or 3.76% compared with the prior year-end. The domestic RMB-denominated loans amounted to RMB6.38 trillion, growing by RMB280.147 billion or 4.59% from the prior year-end. New loans were primarily granted to the key national strategic opportunities, key areas related to livelihood initiatives and key projects under “Going Global” efforts.
• As at the end of March 2015, the Bank’s customer deposits totalled RMB11.56 trillion, an increase of RMB670.755 billion or 6.16% compared with the prior year-end. The domestic RMB-denominated deposits increased RMB513.707 billion or 6.31% to RMB8.66 trillion from the prior year-end. The Bank’s annualised net interest margin was 2.22%, and declined by 3 basis points compared with the whole year of 2014.

Source: Credit Suisse, BNP Paribas, Royal Bank of Scotland, Bank of China

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