Credit Suisse posts CHF14.2bn inflows in Q2 2015
Credit Suisse has reported having recorded total net new assets of CHF 14.2bn (€13.1bn) in Q2 2015 against CHF 17bn (€15.7bn) in Q1 2015.
These figure includes CHF 1.6bn (€1.47bn) of outflows from the corporate and institutional clients business in Switzerland that results from the low interest rate environment and related pricing changes on cash deposits.
Wealth management clients account for CHF 9bn (€8.28bn) amid new assets recorded by Credit Suisse. The group saw “continued strong inflows from Asia Pacific, driven by Greater China, and a solid contribution from Switzerland and Europe, Middle East and Africa (EMEA).”
Credit Suisse added that net asset inflows in Switzerland have benefited from good momentum in the ultra-high-net-worth individual client segment.
The private banking and wealth management division of Credit Suisse has reported net revenues of CHF 3.15bn (€2.9bn) and pre-tax income of CHF 937m (€862.9m).
“The strategic businesses of Private Banking & Wealth Management generated pre-tax income of CHF 1bn with a strong contribution from Wealth Management Clients and Corporate & Institutional Clients, partially offset by lower asset management results due to the sale and restructuring measures taken in the fourth quarter of 2014,” said the firm.
Tidjane Thiam, CEO of Credit Suisse, scommented: “Credit Suisse reported improved profits in the second quarter. Asia Pacific delivered a strong performance. Effective collaboration and alignment between our Private Banking and Investment Banking franchises have led to excellent growth in profits in Asia Pacific.
“Overall, our wealth management activities produced an improved performance and generated a good return on regulatory capital as a few initiatives are bearing fruit, particularly in Asia Pacific and in Switzerland.
“During the quarter, we launched our new advisory offering, Credit Suisse Invest, in Switzerland, following the Asia Pacific launch of the digital private banking platform in the first quarter. In our investment banking activities, profits declined in spite of a better performance in equities and advisory due to an increase in costs.
“We reduced our leverage exposure in the investment bank during the quarter and that process must continue.”
He added: “The management team and I have begun to evaluate how to best evolve the bank through an in-depth strategic review. Before the end of the year, we will set out a strategy and business model that will allow us to achieve profitable and sustainable growth.”