Money

Credit Suisse third-quarter net profit falls 38% as wealth unit misses


© Reuters. FILE PHOTO: Logo of Swiss bank Credit Suisse is seen in Basel

ZURICH (Reuters) – Credit Suisse Group AG (S:) on Thursday posted a 38% fall in third-quarter net profit, as a surge in investment banking failed to offset a slowdown in wealth management, while a one-off boost last year left this year’s figure looking flat.

Profit reached 546 million Swiss francs (462 million pounds) in July-September. That compared with the 572 million franc median of 17 analyst estimates compiled by the Swiss bank.

A year earlier, Credit Suisse received a 327 million franc revenue boost from the sale of its InvestLab fund platform.

In a statement, the bank said it is focused on supporting clients “through the persisting COVID-19 pandemic and the resultant economic challenges. We would expect this environment to continue to result in elevated levels of transactional and trading activity.”

Chief Executive Thomas Gottstein in July announced a broad round of cost cuts, including merging the global markets trading division and advisory-focused investment banking and capital markets unit, as his first major strategic stamp on the bank.

The newly merged investment banking unit saw pre-tax profit rise to 370 million Swiss francs, with increased trading helping equity and fixed income sales and trading surge 5% and 10%, while capital markets and advisory revenue rose 33%.

A drop in revenue at its international wealth management unit, a sore point in the second quarter, was more pronounced than analysts had anticipated.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

READ  UK's smart motorways to be reviewed after huge rise in near-misses

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

Leave a Reply