CSAM sees E3.5bn institutional outflow
GLOBAL – Credit Suisse Asset Management saw an outflow of four billion dollars (3.5 billion euros), mostly from institutional clients, in the third quarter of this year.
Parent Credit Suisse Group said CSAM’s total assets under management rose 0.4% to 312.7 billion dollars as at the end of September.
But the slight rise reflected a four billion dollar net outflow of assets “primarily related to institutional clients” that was offset by better market performance and exchange-rate effects.
CSFB Financial Services, the division which comprises CSAM and Private Clients, saw its profit decline 15% to 34 million dollars. The fall was put down to higher personnel costs.
Meanwhile, assets under management at its Life & Pensions unit declined four percent to 112.3 billion Swiss francs from 117 billion francs at the end of the first half.
The division posted a net operating profit before minority interests of 126 million francs – compared to a loss a year ago of 1.1 billion francs. Total sales at the arm were 3.8 billion francs, down from 5.2 billion francs in the 2002 period.
Overall, the Credit Suisse Group reported a net profit of two billion francs in the third quarter, compared to a net loss of 2.1 billion francs a year ago.
“Credit Suisse Group is benefiting from the measures taken in 2002 and 2003,” the bank said. “Going forward, the Group will continue to concentrate on enhancing efficiency and building its client franchise, and it remains focused on producing sound profitability.”