SWITZERLAND – Credit Suisse Asset Management has posted lower revenues and new asset inflows in the third quarter.
CSAM’s revenue of 403 million Swiss francs was 16% lower than the second quarter and 15% down on the year-ago period.
According to the firm’s ‘key information breakdown’, net new assets at CSAM were 0.4 billion francs, down from the one billion francs of new business recorded in the second quarter - but up from the 5.3 billion-franc outflow a year ago.
Total assets under management at CSAM at the end of September was 386.9 billion francs – broadly flat with the 385.6 billion francs under management at the end of June.
Parent Credit Suisse said its Wealth & Asset Management arm – which includes CSAM - reported a slump in net income, down 59% to 30 million francs on the year-ago quarter.
Net revenues at the division slid 11% to 635 million francs. It said the decrease was “largely to an anticipated decline in the number and magnitude of private equity gains, and – to a lesser extent – declines in asset management fees in Credit Suisse Asset Management”.
Chief executive Oswald Grübel spoke of “a subdued period in the harvesting cycle of private equity investments”.
Insurance arm Winterthur had a net income of 362 million francs – “demonstrating a firm trend towards continued earnings generation”.
Life & Pensions reported net revenues of 2.7 billion francs, down eight percent. “This decrease was driven mainly by lower volumes in traditional business in Switzerland, reflecting current market trends.”
Overall, Zurich-based Credit Suisse reported a net income of 1.35 billion francs, down from 1.46 billion francs in the previous quarter.
Grübel said: “Overall, Credit Suisse Group reported solid net income for the first nine months of the year, while it experienced a mixed third quarter against a backdrop of subdued market sentiment, significantly reduced client activity and normal seasonal effects."