Credit Suisse’s pretax profit in Asia Pacific declined by almost a fifth in the third quarter as a turbulent market resulted in lower client activity.
The Swiss bank’s adjusted pretax profit in Asia Pacific (Apac) fell 18 percent to 186 million Swiss francs ($186 million) in the third quarter, from 228 million francs a year ago, Credit Suisse said in a statement on Thursday.
The decline was a result of lower revenues in the markets business due to lower client activity and risk appetite as a consequence of the challenging market conditions, Credit Suisse added. Profit at the Markets division in Apac was almost wiped out, with a pretax of $1 million, down from $52 million a year earlier. Trading and sales in fixed income products was especially hurt, the bank said.
Net New Assets Inflow
Credit Suisse’s private bank in Asia won 6.4 billion francs in new money off clients, the bank said mainly from the ultra-rich entrepreneurs. Assets under management amounted to 208 billion francs at the end of the third quarter, up from 190 billion a year ago.
The wealth management business reported pretax of 184 million francs for the third quarter, up 3 percent. Private banking saw growth in net interest income and recurring commissions and fees, while transaction-based revenues were significantly down in the third quarter due to a shift in client sentiment in the current market environment, the bank added.
