Credit Suisse has reported a year-on-year increase of 80% in income before tax in its third-quarter results.
The group’s pre-tax income in the third quarter has risen to CHF 400 million from the CHF 222 million reported one year prior.
Over the first nine months of the year, the group has had an income of CHF 1.6 billion, a significant jump from the previous year’s loss of CHF 63 million over the same period of time.
This is while the Credit Suisse Group reported a net outflow in new assets of CHF 1.8 million, a fall from CHF 11.6 million in the third quarter of 2016.
Even so, assets under management for the third quarter of 2017 totalled CHF 1.3 billion, up 7.2% from CHF 1.2 billion on year prior.
Strong on asset management
In terms of Credit Suisse’s asset management business, income before tax rose 110% from CHF 49 million in Q3 2016 to CHF 103 million in Q3 of this year.
Net revenue for the asset management unit was up 34% in the third quarter to CHF 392 million from CHF 292 million one year prior.
This is as assets under management for the asset management arm increased by 16% in the third quarter year-on-year to CHF 376.3 million.
In a statement, Tidjane Thiam, CEO of Credit Suisse said: ‘While the outlook for global economic growth has continued to improve, uncertain geopolitical developments, central bank policies and the magnitude and timing of reforms in the US, as well as historically low levels of volatility, have impacted client activity levels, which remained muted.
‘We have maintained our relentless focus on costs, with approximately CHF 400 million of additional savings in 3Q17 and CHF 1 billion in 9M17. We are confident in ending 2017 below our CHF 18.5 billion cost target.’
Swiss Universal Bank
The Swiss Universal Bank’s results were less positive, as its income before taxes in the third quarter is down 44% compared to Q3 2016. The income pre-tax fell to CHF 426 million from CHF 758 million.
This was largely down to a less in income from private clients, down 61% year-on-year.
This is while net revenue for the Credit Suisse subsidiary fell by 21% year-on-year in the third quarter to CHF 1.3 billion from CHF 1.7 billion.