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Lower profit of Credit Suisse's due to US tax?

Next week it should finally be so far. After three loss-making years, Tidjane Thiam, boss of the Credit Suisse wants to present , for 2018, a significant Plus. Yesterday, the Bank pre sent, however, a bad news. So she now assumes that she might fall under the new US tax with the name of "Base Erosion and Anti-Abuse Tax". And that will be expensive.

The US President Donald Trump's tax should apply, if multi-national corporations to reduce their tax burden, by removing capital from the United States. Credit Suisse has been studying a new draft of the law and now believes, that she is affected by the tax. On the investor day in December, the Bank management was of the opposite opinion.

tax rate for the UBS deeper

Still, all of this are assumptions, because the text of the law is not yet adopted. The new assessment method has, however, already now the impact on the Bank's results. "Because of the US-tax profit for the year Credit Suisse, is expected to be CHF 100 million lower," says Andreas Venditti, an Analyst at Bank Vontobel. He takes back therefore the profit estimate for the full year from 2 to 1.9 billion Swiss francs. The Bank have probably want to avoid the higher tax rate, the result presentation next week on the topic. Therefore, you have released the Information a few days earlier, Venditti. For the year 2019, the profit is likely to decline because of the tax norm in order to 100 million Swiss francs. After that, it is not yet clear. Similarly, the analysts of Zürcher Kantonalbank.

The tax would not only affect the Credit Suisse. The whole financial sector is potentially exposed to the new tax. Because between the companies in a lot of capital flows. This is the case, for example, if a subsidiary of the parent company interest for the local equity allocated and paid. The banks are now trying to control the Bank's internal cash flows so that in the USA, no taxes are due.

UBS has made in contrast to the so far Credit Suisse has not be a Change in assumptions to the new tax. The largest Swiss Bank apparently assumes to be not of the rules affected. Because the UBS, in addition to benefits in the United States for many more years of losses from the financial crisis, you can make tax-deductible. In addition, the group is likely to be placed in the structure of the UBS so that their internal capital flows, fall less under the US tax, say industry experts. The result is that the tax rate of the UBS is significantly lower than that of the Credit Suisse. In the case of UBS, it is 25 percent. Credit Suisse now expects a rate of 40 percent. In the coming year, it will then sink to 30 per cent.

CS in Switzerland on course

Overall, the goals of Credit Suisse for 2018 remain unchanged. Recently, Switzerland-chief, Thomas Gottstein at a meeting of the "Finance and economy", which, like this newspaper for the Tamedia publishing house said that the Bank was in the home market on course. The Swiss company is likely to achieve, according to Gottstein, the profit target of at least 2.2 billion Swiss francs. In the industry took this anticipation of the result for the year rather surprising note.

the competition at the end suffered for the year, the trade division. As Paribas, the yield broke through the French BNP in trading bonds, commodities and foreign exchange by more than 20 percent. This is because the market conditions are said to have been in the fourth quarter of extremely. The trading division of Credit Suisse, an important leg to stand on, even though it lost in the Era Thiam important.

(editing Tamedia)

Created: 06.02.2019, 21:25 PM

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