Credit Suisse Private Banking & Wealth Management posted a 71% rise in pre-tax income, but flat net revenues in the fourth quarter at CHF 3.3bn ($3.64bn) on a quarterly basis.

Pre-tax income rose 71% on a yearly basis to CHF911m from CHF532, but decreased on a quarterly basis from CHF936 in Q3.

The pre-tax income benefit was the result of "strategic initiatives", said Credit Suisse.

Net revenues were up around CHF300m on a year-on-year basis.

The rise was mainly due to strong transaction and performance-based revenues primarily from higher performance fees and brokerage and product issuing fees, Credit Suisse said.

Credit Suisse announced the creation of a combined private banking & wealth management division by end-2015, to improve savings.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.


Sharp decline in net new assets

Assets under management (AuM) of CHF1.25bn were stable compared to 3Q12, and up around 6% year-on-year.

Net new assets fell on a yearly basis to CHF10.8bn from CHF46.6 in 2011, or a 76.8% decrease, due to adverse Western European outflows and the Clariden Leu integration.

Wealth management clients contributed net new assets of CHF 2.9bn, particularly from emerging markets and from ultra-high-net-worth individual (UHNWI) client segment, partially offset by outflows in Western Europe, the bank said.


Stable operating expenses

Total operating expenses of CHF2.3bn were stable from the Q3 as lower compensation and benefits, reflecting the efficiency measures, were offset by higher general and administrative expenses, mainly due to investments in IT infrastructure and seasonal expenses.

On a yearly basis however, the operating expenses were 5% lower.

The unit reported no litigation provisions down from CHF478m in 2011 when provisions were up in connection with German and US tax matters.

The wealth management unit also posted 5bps lower gross margin results at 110bps on a yearly basis, and stable compared to Q3.

"We made good progress in the fourth quarter in adapting our private banking & wealth management business to the new environment, capturing client momentum and improving profitability," said Credit Suisse CEO Brady Dougan about the wealth management business.