Profits and assets under management rose in the quarter, even while revenues declined, the bank said today.

Credit Suisse chalked up a broadly stronger set of financial figures for the first three months of 2019, with pre-tax income rising to SFr1.062 billion ($1.041 billion) from SFr1.054 billion a year before, and net income attributable to shareholders up to SFr749 million from $694 million.

The higher profits were achieved even though Switzerland’s second-largest bank's net revenues declined to SFR5.387 billion from SFr5.636 billion, it said today.

The net income figure was the highest quarterly profit since the third quarter of 2015, Credit Suisse said, while its pre-tax result was the tenth consecutive quarter of year-on-year growth. The figures come at the end of a three-year restructuring period put in place by chief executive Tidjane Thiam.

The bank said it logged net new assets into its wealth business, standing at SFr9.6 billion, which translates to an annualised growth rate of 5 per cent for the quarter. Assets under management reached SFr786.1 billion at the end of March - a record.

Operating costs stood at SFr4.2 billion, falling by 6 per cent on a year earlier.

The Common Equity Tier 1 ratio, a standard measure of banks’ capital buffers under Basel rules, was 12.6 per cent, Credit Suisse said. 

“We are now operating with a lower risk profile, a stronger capital base and a structurally lower cost base. Our model is resilient; this allows us to protect our bottom line during periods when markets are challenging and provides upside when conditions improve. The first quarter was one of three very distinct months: a challenging January, a limited recovery in February followed by a strong March, which was our second-highest revenue month in the last 39 months,” Thiam said.

Business groups
The firm said that its Swiss Universal Bank delivered pre-tax income of SFr550 million in a “challenging market environment”. Net revenues fell by 4 per cent to SFr1.4 billion, reflecting lower recurring commissions and fees, slightly lower net interest income, reduced transaction-based revenues as well as lower client activity levels compared with the strong first quarter of 2018.

International Wealth Management posted record quarterly net revenues and pre-tax income since the division was established in late 2015. Pre-tax income in the first quarter grew by 8 per cent year-on-year to SFr523 million, and the return on regulatory capital stood at 35 per cent. Net revenues increased slightly by 1 per cent compared with the first quarter of 2018. Total operating expenses were down by 4 per cent.

Asia Pacific generated pre-tax income of SFr183 million in the first quarter of 2019, down from SFr234 million in the same quarter in 2018, which was a record quarter, in terms of revenues, for Wealth Management & Connected. APAC also delivered a return on regulatory capital of 13 per cent. This business was affected by lower levels of market activity in Asia as well as lower transaction fee pools in the first quarter of 2019. Operating costs fell by 12 per cent, mainly due to the absence of major litigation expenses this year.