The Swiss bank returned to profits in the fourth quarter, marking a successful achievement of targets for CEO Tidjane Thiam. Credit Suisse's trading department remains a worry.
Credit Suisse profit for the last three months of 2018 stood at 292 million Swiss francs ($290 million) from a net year-ago loss of 2.1 billion francs. The Swiss bank has smashed nearly all market expectations with the result, which follows an eventful three-year restructuring under CEO Tidjane Thiam.
Turbulent financial markets at year-end didn't affect Credit Suisse as much as rivals: the bank's pre-tax profit of 628 million francs was more than four times the year-ago result. Credit Suisse's trading arm posted a loss – as flagged previously – of 193 million francs, which was less than expected.
On the wealth management side, the bank hovered up 500 million francs in the quarter, which translates to a growth rate of just shy of 4 percent. Withdrawals in Europe partly offset inflows from other, more buoyant emerging markets, Credit Suisse said.
Its Asian wealth managers missed estimates for net new money, winning just 1.2 billion francs, or less than half the 2.6 billion franc consensus view.
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