Brexit-related charges prompt significant loss at country subsidiary even though business remains brisk.

Credit Suisse's German subsidiary posted a loss of about $30 million (26.2 million euros) according to an official report made available to finews.com. It publishes separate figures because of the banking license held there.

When asked, the bank declined to discuss the loss. «Credit Suisse only publicly discloses financial results for the group and the divisions,» it said.

Still, it emphasized how important the country remains for the bank. «Germany remains a key growth market,» adding that it intends to continue making significant investments in services for clients based there.

The Brexit Factor

A closer look reveals a number of reasons why the loss in the German unit can be cast in a more positive light.

Part of the loss was clearly prompted by a $12 million increase in retirement provisions, which are usually revised or adjusted in company accounts without input from management.

Administrative costs rose significantly as it made preparations for Brexit, which involved shifting some activities from London to Frankfurt where it built a lending hub.

Larger Balance Sheet

Those loans weren't on the books a year earlier, and are an important reason for the balance sheet nearly doubling to $3 billion.

Off-balance sheet liabilities also rose significantly as a result of the enhanced credit business, where total volumes rose by about $4 billion, the report said.

When you put everything together, interest income was up by about $10 million and clearly in the black.

Swiss Manage Ultra-High Net Worth

Because Credit Suisse no longer has a private client business in Germany, it means that ultra-high net worth clients are managed out of Switzerland. That also means that they are booked and consolidated there. But if a management account perspective was taken instead, it would probably only serve to underline the importance of the German market.

The report also discussed investment banking, where the Capital Markets & Advisory business saw generated revenue market share rise to 6.3 percent from 3.1 percent. Part of this was due to a number of 2019 advisory mandates that only closed in 2020 but it also reflected new mandates it won last year in both M&A and Equity Capital Markets.

German IPO on NYSE

A public deal the German unit worked on was the Nasdaq IPO of Tuebingen-based COVID-19 vaccine developer Curevac. It also worked on another deal with Bayer to divest its Animal Health unit to U.S.-based company Elanco.

When you look at Dealogic's figures, Credit Suisse ranks third in German investment banking in M&A, only trailing J.P. Morgan and Goldman Sachs on the victory podium. Its revenues comprise about 8 percent market share. Major Swiss bank UBS, in contrast, only ranks eighth with a market share of about 5 percent.

UBS Again Not in Sight

In the leverage loans business, Credit Suisse ranks second behind local heavyweight Deutsche Bank. UBS only makes it to sixth place, with the market share of both Swiss institutions at 8.5 and 6.3 percent respectively.

When it comes to IPOs, Credit Suisse is fifth with a market share of 7 percent while its main Swiss competitor doesn't even make the list.