Reports

Credit Suisse Logs Rise In Q1 Private Banking, Wealth Management Pre-Tax Income

Tom Burroughes Group Editor London 16 April 2014

Credit Suisse Logs Rise In Q1 Private Banking, Wealth Management Pre-Tax Income

Credit Suisse today announced that private banking and wealth management pre-tax income rose 15 per cent year-on-year to SFr1.012 billion ($1.149 billion).

Credit Suisse today announced that private banking and wealth management pre-tax income rose 15 per cent year-on-year to SFr1.012 billion ($1.149 billion), while net revenues slipped 1.0 per cent to SFr3.24 billion in the same period.

The Zurich-listed banking group total operating expenses at this segment of the bank fell 7 per cent to SFr2.195 billion; provision for credit losses rose 18 per cent to SFr33 million.

The bank has bought and disposed of a number of assets over recent months in the battle against rivals such as UBS. For example, it acquired part of the non-US wealth management business of Morgan Stanley; it has sold a German private banking business to ABN AMRO, and spun off the Clariden Leu (Europe) operation in London.

Net revenues were stable overall because higher transaction- and performance-based revenues and higher recurring commissions and fees were counterbalanced by lower net interest income and lower revenues in other areas.

This segment of the bank had a cost/efficiency ratio of 67.6 per cent in the first quarter, compared with 67 per cent at the end of December 2013.

For the whole of Credit Suisse, the bank, which is the second-largest in Switzerland, said net income attributable to shareholders fell 34 per cent year-on-year to SFr859 million; net revenues fell 8 per cent over the period to SFr6.469 billion; total operating expenses fell 3 per cent to SFr5.039 billion. The cost/income ratio of the group was 77.8 per cent, down sharply from the 108 per cent figure at the end of 2013.

Pre-tax income was SFr1.4 billion, a fall of 22 per cent from a year ago. This reflected an 8 per cent fall in net revenue, partly offset by a 3 per cent fall in total operating costs.

“For the first quarter, we achieved a return on equity of 14 per cent in our strategic businesses, well within reach of our 15 per cent through-the-cycle target. This strong performance was driven by significantly improved profitability in Private Banking & Wealth Management, solid returns in Investment Banking and continued effective cost and capital management,” Brady Dougan, chief executive, said.

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