The private banking & wealth management division of Credit Suisse has reported total pre-tax income of CHF882m for the fourth quarter of 2014, up 108% from CHF424m a year ago.
For the quarter, the strategic businesses for Private Banking & Wealth Management (PB&WM) reported income before taxes of CHF1.0bn and net revenues of CHF 3.2bn.
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The division reported net revenues of CHF3.22bn, a decrease of nearly 6% compared to CHF3.42bn a year earlier.
Total reported operating expenses for the quarter stood at CHF2.3bn, compared to CHF2.96bn in the fourth quarter of 2013.
In the fourth quarter of 2014, the wealth unit has assets under management of CHF1.37trn, an increase of 7.4% from CHF1.28trn in the fourth quarter of 2013.
The PB&WM unit reported total net new assets of CHF3.0bn, with wealth management clients contributing net new assets of CHF4.4bn driven by inflows from emerging markets, particularly EMEA and Asia Pacific, while asset management reported net asset outflows of CHF10.6bn in 4Q14.
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By GlobalDataThe bank’s asset management unit reported net revenues of CHF535m in the latest quarter, down 26% from the year ago quarter driven by lower fee-based revenues partially offset by improved equity participations and other gains.
The asset management business reported income before taxes of CHF210m in, a decrease of 43% from CHF369m in the year ago fourth quarter.
Overall, the Swiss banking group posted an income of CHF921m and its net revenues increased 8% to of CHF6.37bn compared to the last quarter of 2013.
Credit Suisse CEO Brady Dougan said: "Our strategic businesses generated a return on equity of 11% for the quarter and 12% for the full year. During the quarter, we further reduced leverage exposure, continued to execute our capital measures and exceeded our 10% Look-through CET1 year-end target, including the impact of the US settlement."
"In Private Banking & Wealth Management, we reported solid strategic pre-tax income of 1 billion Swiss francs. Our results were negatively impacted by lower performance fees and the ongoing low interest rate environment, compared to the fourth quarter of 2013," he added.
