Credit Suisse's private banking arm has seen its Q1 profits grow by more than a third against last year on net revenues that grew by over a fifth.
The private banking segment recorded income from continuing operations before taxes of CHF1.308 billion in the first quarter of 2006, up 34% from the first quarter of 2005.
Net revenues grew 22% compared to the first quarter of 2005, primarily reflecting a significant increase in commissions and fees as the segment proved its ability to capitalize on the very strong client activity and market momentum.
The bank said that total operating expenses rose 14% from the first quarter of 2005, mainly reflecting higher performance-related compensation accruals as well as personnel expenses relating to strategic growth initiatives. Compared to the fourth quarter of 2005, income from continuing operations before taxes rose 27%, reflecting a 15% improvement in net revenues and a 6% rise in total operating expenses.
Credit Suisse’s wealth management business meanwhile reported income from continuing operations before taxes of CHF963 million in the first quarter of 2006, up 50% from the first quarter of 2005 and up 37% from the previous quarter. The pre-tax income margin was 43.2% for the first quarter of 2006, corresponding to an increase of 5.5 percentage points versus the first quarter of 2005 and of 5.6 percentage points versus the previous quarter.