GLOBAL – The Credit Suisse Group posted a 237% rise on the year in the net income of its wealth and asset management business to CHF101m (€65.5m) in the third quarter, according to results released today.
However, this annual climb compared unfavourably with the CHF245m net income at the end of June, representing a 59% drop on the quarter.
While the third quarter enjoyed higher revenues in all key business areas, that the second quarter benefited from a particularly high level of private equity gains in alternative capital, the report said.
The first nine months of 2005 ended with a net income of CHF481m – an increase of 3% compared to the same period in 2004, despite the lower and varied private equity gains.
Net revenue under wealth and asset management increased 55% on the year to CHF1.25bn, but dropped 20% on the quarter.
The third quarter also saw the net income of Credit Suisse’s life and pensions arm drop 17% on the quarter and 41% on the year.
Despite this, the Credit Suisse report stated the outcome reflected “solid technical results and business volumes”.
It added: “The result included an adverse net impact after tax and policyholder participations of CHF61m related to changes in actuarial assumptions and models”
Overall, the Credit Suisse Group reported a CHF1.9bn net income in the third quarter owing to increased client activity and an active market environment, up from CHF1.4bn last year.
“I am confident that we can build on this performance and deliver higher returns in the future,” said Credit Suisse chief executive Oswald Grübel.
“Our work to implement our strategy and to position our company for future growth has only just begun,” he added. “We will focus on our core strengths in investment banking, private banking and asset management going forward.”
Credit Suisse has CHF434.9bn in AUM and 3,007 employees in its wealth and asset management segment.