Credit Suisse ready to sell again after ETF business
Swiss bank Credit Suisse could be ready to put up for sale new business lines, which include the disposal of its exchange traded funds business, in order to implement a new cost reduction plan aiming at reducing the cost base by CHF3bn in 2013.
During the third quarter of the year, Credit Suisse’s asset management division posted CHF222m pre-tax profits, while the investment bank made CHF508m profits.
The sale of Credit Suisse’s remaining holding in Aberdeen Asset Management in July 2012 resulted in a gain of CHF140m, the bank said.
“In addition to the gain on Aberdeen, equity participations and other gains included an impairment of CHF38m related to Asset Management Finance LLC,” Credit Suisse added.
Excluding the gains from these sales and the impairment, income before taxes was CHF120m at the end of the third quarter, compared to CHF67m in 2Q12 and CHF82m in 3Q11.
The bank’s third-quarter net profits fell 63% and net revenues were CHF5.8bn, down 15% compared to the previous year.
Credit Suisse welcomed progress made in the implementation of a strategy aimed at making its asset management business more liquid and capital efficient.
BlackRock and State Street Global Advisors have been rumoured to be the more likely candidates to buy Credit Suisse’s $17bn ETF business.
The deadline for bids expired around two weeks ago, and a third unnamed buyer is also thought to have presented an offer.