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Credit Suisse Asia profit jumps on WM strength

Credit Suisse Asia profit jumps on WM strength

Pre-tax income and net revenue at Credit Suisse’s Asia Pacific arm rose in the first quarter, thanks to higher profit recorded across its business in the region.

Compared to the first quarter of 2017, income before taxes increased 59% to CHF 234 million ($238 million), while net revenue increased 12% to CHF 991 million ($1,008 million).

This is on the back of higher revenue from its Asia Pacific wealth management and connected (WM&C) business, reflecting higher private banking income.

Net revenue at WM&C increased 6% to CHF 663 million ($674 million). Private banking, the Swiss banking giant said, saw strong client activity, resulting in its highest quarterly revenue to-date, up by 11% year-on-year.

This was primarily driven by increases in both transaction-based revenues and recurring commissions and fees.

Credit Suisse’s net margin was 34 basis points in the first quarter, eleven basis points higher compared to the fourth quarter of 2017.

Assets under management and net new assets of CHF 199.1 billion ($202 billion) were CHF 2.3 billion ($2.34 billion) higher compared to the fourth quarter of 2017.

These assets relate to its private backing business within the WM&C unit. Inflows primarily came from Greater China, Japan and Southeast Asia.

‘In our wealth management-related businesses SUB [Swiss universal bank], IWM [international wealth management] and Asia Pacific WM&C – after two years of progress in 2016 and 2017 – we continued in Q1 2018 to generate client-driven, profitable1 growth,’ said Tidjane Thiam, CEO of Credit Suisse.

‘In Q1 2015, these divisions generated combined adjusted pre-tax income of CHF 798 million ($812 million). In Q1 2018, we generated CHF 1.3 billion ($1.32 billion) of adjusted pre-tax income, an increase of 61% or approximately CHF 500 million in three years.

‘More than half of this additional pre-tax income was generated in Q1 2018 alone – highlighting the acceleration in our ability to deliver profitable, compliant growth,’ he added.

In a press briefing in Singapore this February, Asia Pacific CEO Helman Sitohang said the bank now has 590 relationship managers in the region, and is looking to further expand its asset base.

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