Interesting graph in todays UBS Bulletin showing the way the USA is milking global companies with fines.
|2014||Bank Name||Total Assets||Cost-Income Ratio||Leverage Ratio||Capital Ratio CET1 Ratio|
|in CHF m||%||%||%|
|CS||Credit Suisse Group||921’462||86.8||4.74% *||10.1|
* lower if 2019 requirements are factored in; Swiss Leverage Ratio 4.1% according to this presentation , page 5.
|2014||Bank Name||Net Profit||Employees||Profit per|
|in CHF m||Employee in CHF|
|CS||Credit Suisse Group||2’105.00||45’800||45’961|
Based on the above, which bank would you chose?
– a high cost-income ratio means low margins, low profitability and high relative employee costs –> this leads to restructuring, job cuts and relevant for any customers: client relationship manager changes
– a low leverage ratio means higher risks when the bank is hit by the inevitable stormy waters
– profit per employee shows you which banks are cost effective employers and a high profit per employee should make shareholders happy
– a high capital ratio signals good reserves for choppy business, a cushion in case of adverse business changes