Credit Suisse EPS Could Drop 20% Following SNB Decision

Swiss francs have given back about half the value they gained immediately after the Swiss National Bank (SNB) removed the currency’s price cap against the Euro. The exchange rate, previously fixed at 1.2 EUR/CHF, fell to 0.89 and then bounced back sharply, sitting between 1.02 and 1.05 for the last few hours. Once the shock has worn off, Morgan Stanley analysts Huw Van Steenis and Bruce Hamilton expect the franc to have appreciated by about 10%, knocking 10% - 20% off earnings for some major Swiss companies.

Credit Suisse stand to lose more than 10% EPS

“Moves today (15% against major currencies) mean we estimate [Credit Suisse] prima facie may...