Annual Report 2022

bank financial statements

The primary business of a bank is managing the spread between deposits that it pays consumers and the rate it receives from their loans. In other words, when the interest that a bank earns from loans is greater than the interest it pays on deposits, it generates income from theinterest rate spread. The size of this spread is a major determinant of the profit generated by a bank. Although we won’t delve into how rates are determined in the market, several factors drive rates including monetary policy set by the Federal Reserve Bank and the yields on U.S. Below we’ll take a look at an example of how the interest rate spread looks for a large bank.

bank financial statements

In turn, banks take the deposits and either invest those funds in securities or lend to companies and to consumers. Since banks receive interest on their loans, their profits are derived from the spread between the rate they pay for the deposits and the rate they earn or receive from borrowers. Banks also earn interest income from investing their cash in short-term securities like U.S.

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We exit the second year of the pandemic rooted in markets with strong growth prospects. bank financial statements We have the right strategy, business model and ambition to deliver on this potential.

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The specific reporting requirements depend upon the size of the institution, the nature of its activities, and whether it has any foreign offices. Depositsare the largest liability for the bank and include money-market accounts, savings, and checking accounts. Although deposits fall under liabilities, they are critical to the bank’s ability to lend. If a bank doesn’t have enough deposits, slower loan growth might result, or the bank might have to take on debt to meet loan demand which would be far more costly to service than the interest paid on deposits.

Supporting documents

Our underlying profit before tax at $3.9 billion, grew 61 per cent on a constant currency basis. This was supported by low levels of impairment, a return to positive income momentum in the second half of 2021 and cost control.

These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy.

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  • Credit Suisse Group AG owns 100% of Credit Suisse AG , the principal operating subsidiary.
  • Information on both financial statements and governance are presented below.
  • This is because the bank expects to receive interest and principal repayments for loans in the future and thus generate economic benefit from the loans.
  • The improvements in external conditions, however, are not guaranteed and substantial uncertainties persist, in particular regarding geopolitical tensions and the evolution of inflation and interest rates.
  • As a result, as interest rates rise, banks tend to earn more interest income, but when rates fall, banks are at risk since their interest income declines.
  • Again, the overall structure of an income statement for a bank doesn’t stray too far from a regular income statement.

But one of the things we’re doing in this strategy is we really want to make being purpose led integral to everything we’re doing. On this page you will find the annual reports of Credit Suisse AG and the Credit Suisse AG , as well as our Sustainability Report available for download. The long-term fundamentals of the markets in which we operate have not changed.

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A psychologist by profession, she loves to venture into self-exploration, holistic healing, and spirituality. Other than being mesmerised by superheroes and metaphysics, contemplating on life and its depth is what keeps her in high spirits.