Reports
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.