You can’t be much else than shocked by the dramatic revenue drops.
This is the unfiltered story, no PR-talk, no salesman talk, just facts and figures:
|Net interest income||1’999||2’011||2’869||-30.32%|
|Commission and fees||2’796||2’675||3’259||-14.21%|
Then compare it to expenses:
All small moves.
|Compensation and benefits||2’734||2’482||2’914||-6.18%|
|General and administrative expenses||1’760||1’848||1’928||-8.71%|
Further important problems:
- Strategic Resolution Unit (SRU) is a huge black hole for revenues and at the same time costs a lot to run, especially „other operating expenses“.
- Swiss Universal Bank (SUB) and International Wealth Management are running with decent margin, especially when compared to Global Markets which is very expensive to run. Probably to many „screen watchers“ in London, NY etc…
What is an especially large challenge as an outsider; understanding what is in the Strategic Resolution Unit (SRU) and how is it performing.
Some info from the 1H16 report:
The bloodsuckers are
- the investment banking portfolio which somehow manages to have negative revenue (always a good sign if your assets are working against you).
- the funding costs