Credit Suisse speaks of core results and then separately of the revenues and expenses from the Strategic Resolution Unit (SRU). But they seem to use this wind-down unit for moving regular occuring problem loans and non-performing loans that were reported in other core units in previous quarters. (see graphs from the quartely reports near the bottom of this post, where movements are documented in the footnotes of the financial statements.)
It’s very interesting to see that this units losses eclipse all profits quarter by quarter. Not surprising if all the good business is in the core results and all the bad business is moved to the Strategic Resolution Unit. “The Strategic Resolution Unit consolidates the remaining portfolios from the former non-strategic units plus additional businesses and positions that do not fit with our strategic direction. ”
If they were loosing money with this unit in stable Q4 15 and somewhat less stable Q1 16 what will have happened in more volatile Q2? There seems to be a high likelihood that whatever problems arise, they will find their way to the SRU.
Also note: This problem bank within Credit Suisse Group employes close to 1500 people! Corporate center, that manages about the same amount of assets has 350 employees.