The Swiss bank's quarterly profit surged over last year's result, masking a loss for its trading arm and a slip in overall revenue.
Zurich-based Credit Suisse said net profit for the three months through September 30 climbed to 424 million Swiss francs ($421.3 million), from 244 million francs year-ago, the bank said in a statement on Thursday.
The healthy headline gives way to a more mixed bag as the Swiss bank ends a three-year restructuring under CEO Tidjane Thiam, who has emphasized business with Asia as well as tapped shareholders for a total of 10 billion francs to replenish weak capital.
Revenue edged 2 percent lower to 4.9 billion, which Credit Suisse more than offset with spending cuts. «We believe we are on track to achieve our 2018 target of cumulative net cost savings of more than 4.2 billion francs and benefit from the operating leverage we have created in 2019 and beyond,» the bank said.
Rosier 2019 Outlook
Specifically, its trading arm swung to a loss of 96 million francs from a year-ago profit due to retreating from emerging markets and interest rate products. Credit Suisse said the unit is poised to benefit from Thiam's restructuring measures, as well as investments in its equities franchise, lower funding costs, and more closely working with its private bankers.
By contrast, profit at Credit Suisse's investment banking advisory unit doubled, domestic profits surged, and those at its wealth management arm edged 6 percent higher. In Asia, profits slid by 19 percent, weighed down by trading.
Its private banking arm, at the center of growth efforts in Asia, won 10.3 billion francs in net new money during the quarter, which translates to 4.6 percent growth.
More to follow
