Credit Suisse surprises with 'better than expected' Q1

Joanna Estrada
April 25, 2018

Wealthy Asian clients bolstered Credit Suisse's profits in Asia in the first quarter, even as income from advising big corporates and underwriting their stock and bond issues slipped from the end of past year.

Credit Suisse's real boost came from cost cuts, saving 10% across the group since the first quarter of two years ago, when restructuring really began.

"With these first-quarter results, we got off to a good start in our third and final year of restructuring, and we are looking ahead to the future with confidence in our new business model and in our execution capabilities", Thiam said in a statement.

Net income attributable to shareholders for the first three months of 2018 was up 16.4 percent year on year, beating the average estimate in a Reuters poll of four analysts for 665 million francs. The company said it stands to benefit from the growth of the global economy both in mature and developing markets across geographies.

The results marked the sixth consecutive quarter of year-on-year profit growth under Thiam, while the quarterly adjusted pre-tax income was the highest for 11 quarters.

Asia accounted for about a quarter of the Swiss institution's total pre-tax income, at 1.054 billion francs.

Quarterly net revenues increased 2% to CHF5.64 billion from the prior year's CHF5.53 billion.

Credit Suisse Group AG is seeking to reclaim hundreds of millions in taxes from a controversial United Kingdom bonus levy that hit banker compensation in 2010. Core net revenues grew 2% to CHF5.84 billion from CHF5.74 billion a year ago.

In the quarter, assets under management were CHF1.38 trillion, up 5.8% from CHF1.30 trillion a year ago.

The bank's shares were up 4.9 percent at 16.985 francs in early trade as markets welcomed the results. In equities trading, the bank looks to have lost further market share-its revenue globally was up about 7.5% in dollar terms over the first quarter previous year, which compares with 24% at UBS and nearly 40% for some big US banks.

Other reports by Click Lancashire

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