Credit Suisse Profit Jumps on Wealth-Management Strength -- Update
November 02 2017 - 3:59AM
Dow Jones News
By Brian Blackstone and Pietro Lombardi
ZURICH -- Credit Suisse Group AG said Thursday its third-quarter
net profit jumped on strong growth in wealth management, providing
evidence that the Swiss banking giant's strategic shift toward
managing wealthy clients' money is paying off.
The bank's net profit grew to 244 million francs ($244.2
million) compared with 41 million francs in the same period a year
earlier. Analysts expected Credit Suisse to post net profit of 211
million francs, according to a consensus forecast provided by the
bank.
Assets under management hit a record high last quarter of 751
billion francs.
Credit Suisse said pretax income from its international wealth
management unit grew 59% last quarter from the previous year to 382
million francs, driven by strong growth in Asia. It saw net new
assets of 10.4 billion francs, up 8% on the year.
Credit Suisse is two years into an overhaul under chief
executive Tidjane Thiam, who took the reins in 2015, as the Swiss
banking giant reorients away from profitable, but volatile,
investment banking toward the more stable business of managing
money for well-heeled clients.
"We are seeing the benefits of a number of key decisions we have
taken to capture the wealth management opportunity," the bank
said.
Overall revenue at Credit Suisse declined 7.9% on year to 4.97
billion francs. Analysts had expected revenue of about 4.98 billion
francs, according to FactSet.
Credit Suisse said it generated cost savings of about 400
million francs in the third quarter, taking nine-month cumulative
cost savings to about 1 billion francs. The bank said it is
confident that it will finish the year below its 18.5 billion
francs cost target.
The bank said that a mix of geopolitical risks, uncertainty over
the timing of reforms in the U.S. and generally low volatility led
to "muted" levels of client activity.
Write to Brian Blackstone at brian.blackstone@wsj.com and Pietro
Lombardi at Pietro.Lombardi@dowjones.com
(END) Dow Jones Newswires
November 02, 2017 03:44 ET (07:44 GMT)
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