The banking division of Credit Sussie has made CHF607m ($615m) in pre-tax income and generated CHF1.4bn ($1.4) in net revenues
Image: Credit Suisse, Paradeplatz in Zürich, Switzerland. Photo: Courtesy of Roland zh/Wikipedia.
Credit Sussie has reported profit before tax of CHF1.1bn ($1.1bn) for the third quarter of 2019 (Q3 2019), a 70% increase compared to CHF671m ($680m) in the third quarter of 2018 (Q3 2018).
The Swiss financial services company’s net income attributable to shareholders increased by 108% from CHF424m ($430) in Q3 2018 to CHF881m in the quarter under review, with an increase in net revenue by 9% from CHF4.8bn in Q3 2018 to CHF5.3bn in the reported quarter.
The company said that its total operating expenses reduced to CHF4.11bn ($4.4bn) in the third quarter of this year compared to CHF4.15bn ($4.2bn) in Q3 2018.
Credit Suisse chief executive officer Tidjane Thiam said: “During the third quarter of 2019, we continued to implement our strategy of being a leading wealth manager with strong investment banking capabilities. We have continued, in a challenging environment, to grow our wealth management franchises, increasing our revenues and gathering record net new assets of CHF 72 billion across the Group year to date.
“Our Global Investment Banking revenues, across markets and advisory, underwriting and financing activities, have also grown strongly, up 8% year on year. Overall, we are reporting our 12th consecutive quarter of year on year positive operating leverage and profit growth.”
Results from individual divisions of Credit Sussie
Swiss Universal Bank (SUB), the banking division of Credit Sussie, reported a 19% increase in pre-tax income at CHF607m ($615m) and a 6% increase in net revenues at CHF1.4bn ($1.4).
The International Wealth Management division has made CHF539m ($545m) income before taxes, a 21% increase from CHF378m ($383m). The private banking business under the division earned CHF428m ($433m) and the asset management business earned CHF111 ($112m).
In addition, the Wealth Management division has generated net revenues of CHF1.4bn ($1.42bn) compared to CHF1.2bn ($1.2bn), a 7% increase.
Furthermore, the Asia Pacific business division recorded a 4% increase in net income at CHF247m ($250) compared to CHF176m ($178m).
Thiam added: “We have continued to invest in our Impact Advisory and Finance activities, as we believe this is an area with large, positive effects globally and in which our clients are increasingly interested. We intend for this to become a growing part of our activities.
“We believe that we are well positioned to achieve further profitable growth, with clients benefitting from our integrated approach as we work with them to provide solutions addressing both their asset and their liability requirements. Helping our clients achieve their objectives ultimately ensures that we create value for our shareholders.”