Credit Suisse Private Banking, encompassing the Swiss banking giant’s wealth management and corporate and retail banking businesses, has rep...

Credit Suisse Private Banking, encompassing the Swiss banking giant’s wealth management and corporate and retail banking businesses, has reported a flat quarter. Income from continuing operations before taxes of SFr1,022 million in the third quarter of 2006, was almost unchanged compared to the same period of 2005. Net revenues decreased slightly to SFr2,682 million in the third quarter, as strong asset-based revenues related to the increased level of assets under management were offset by lower transaction based revenues, reflecting reduced client activity in the third quarter. Total operating expenses were flat compared to the third quarter of 2005, as higher personnel expenses related to ongoing growth initiatives in wealth management were offset by lower performance-related compensation accruals and continuing cost management. The pre-tax income margin of 38.1 per cent was almost unchanged from the third quarter of 2005. The wealth management business reported income from continuing operations before taxes of SFr684 million in the third quarter, a decrease of 5 per cent compared to the third quarter of 2005, as marginally lower net revenues were accompanied by a slight increase in total operating expenses. The pre-tax income margin was 37.1 per cent for the third quarter of 2006, down 1.6 per cent compared to the same period of 2005. Net new assets were SFr10.9 billion, resulting in a rolling four quarter average growth rate of 7.2 per cent in the third quarter of 2006. The equivalent figure for the first nine months was SFr41.9 billion, representing an annualised growth rate of 8.1 per cent. The asset management business reported SFr21.2 billion of net new assets in the third quarter of 2006, including alternative investment assets of SFr6.2 billion. Overall, Credit Suisse Group saw SFr31.0 billion of net new assets in the third quarter of 2006. The group’s total assets under management were SFr1,454.3 billion as of 30 September 2006, an increase of 6 per cent compared to 30 June. "In the third quarter, our wealth management result was seasonally lower, while our investment banking business reported good results in fixed income but was impacted by lower equity trading revenues," said Oswald Gruebel, Credit Suisse's chief executive, in a statement.