Credit Suisse Group has reported net income attributable to shareholders of CHF2,354m in third quarter of 2009 compared to CHF1,571m in second quarter. Core net revenues were CHF8,917 million compared to CHF8,610m in the previous quarter.
Private banking reported income before taxes of CHF867m. This reflected a 4% decline in net revenues to CHF2,833m, mainly due to lower net interest income, while costs remained stable.
The wealth management clients business reported income before taxes of CHF723m, down 5% from earlier quarter.
Investment banking reported income before taxes of CHF1,746m, up 5% compared to the previous quarter, as the business continued to execute its client-focused, capital-efficient strategy and maintain market share momentum across products and regions.
Asset management reported income before taxes of CHF311m compared to CHF55m in the earlier quarter. The improved results benefited from a gain of CHF207m related to the completion of the sale of part of Credit Suisse’s traditional investment strategies business to Aberdeen Asset Management, as well as investment-related gains of CHF97m, compared to investment-related losses of CHF28m in second quarter, primarily reflecting unrealized gains in credit strategies and private equity.
Brady Dougan, chief executive officer, said: “Credit Suisse has responded to the changes in the industry over the past two years with the accelerated implementation of our client-focused, capital-efficient strategy and reduced-risk business model. Our third-quarter performance, including our strong return on equity of 25.1%, shows that our approach continues to work well and is providing the foundation for sustainable, high-quality, lower volatility earnings.
“Our decision a year ago to accelerate the implementation of a client-focused, capital-efficient strategy in Investment Banking in the changed environment is yielding strong benefits. Our Asset Management business saw good net inflows, particularly in our focus areas such as multi-asset class solutions, Swiss advisory and alternative investment strategies. Over the last 12 months we have aligned our Asset Management business with the integrated bank.”
