Credit Suisse sees strong asset inflow
SWITZERLAND - Credit Suisse's asset management section saw assets under management rise 13.7% to almost CHF 670bn (€413.5bn) while income was halved.
The increase was mainly due to a very strong net new asset inflow of CHF 50.8bn over the last year. This more than doubles inflows in 2005 which was "rather weak" according to a Credit Suisse spokesman.
Overall Credit Suisse's asset management unit, which has been hit by defections both in the UK and in Switzerland over the last months, saw its income from continuing operations before taxes halve to CHF 508m compared with 2005.
The company put that down to higher total operating expenses resulting from an on-going realignment process in asset management. This includes a repositioning of businesses with low profitability, reshaping product offering, improvement of investment and sales processes and a reduction of the overall cost base.
Other factors contributing to the decline in income were due to lower private equity and other investment related gains.