INTERNATIONAL - Credit Suisse cut a key profitability target for this year and next as a drop in dealmaking, negative interest rates and uncertainty caused by global trade tensions dimmed the outlook.
Switzerland’s second-largest lender said on Wednesday it expects to hit a return on tangible equity (RoTE) above 8 percent this year, below its previous target of 10-11 percent. The Zurich-based bank also cut its forecast for next year.
“If markets are constructive and support revenue growth, we would expect our year-end 2020 RoTE to be approximately 11 percent,” the bank said in a statement ahead of an investor day in London.
“Conversely, should markets remain challenging in 2020, we have identified up to 50 basis points of additional cost measures in order to protect our RoTE ambition of approximately 10 percent.”
Credit Suisse previously aimed to achieve 11-12 percent RoTE in 2020.