Rillke
Increased financial market volatility and declining profits from operations in Asia have had a negative impact on profits, Switzerland’s second largest bank said.
The net profit of Credit Suisse in July-September increased by 74% over the same period last year and amounted to 424 million Swiss francs ($ 421.55 million). Analysts polled by Reuters predicted an average profit of 449 million francs.
The bank's revenue in the III quarter was 4.8 billion Swiss francs against 4.9 billion francs a year earlier.
Total operating expenses amounted to 4.1 billion Swiss francs against 4.5 billion francs in the third quarter of 2017.
“The conditions were difficult this summer,” said General Director of Credit Suisse Tidjane Thiam.
In addition to the usual seasonal slowdown, increased volatility in emerging markets and the volatility of the currencies of some developing countries led to a decrease in customer activity, he explained.
Among the three main divisions of the bank, the capital management division continued to generate the highest profits. Its adjusted profit before tax was 411 million Swiss francs against 382 million francs a year ago.
The division for trade in world markets recorded a loss before tax in the amount of 96 million francs, while its revenue decreased by 17% in annual terms to 1.04 billion francs.
Pre-tax profit from operations in the Asia-Pacific region fell by 19% in annual terms to 176 million francs, revenue fell by 9% to 811 million francs.
Credit Suisse said that sentiment had deteriorated in the third quarter. The bank expects this negative trend to continue in the fourth quarter. Nevertheless, a significant number of transactions are expected to be completed in the last quarter of the year, depending on market conditions, the bank said.
source: reuters.com
The net profit of Credit Suisse in July-September increased by 74% over the same period last year and amounted to 424 million Swiss francs ($ 421.55 million). Analysts polled by Reuters predicted an average profit of 449 million francs.
The bank's revenue in the III quarter was 4.8 billion Swiss francs against 4.9 billion francs a year earlier.
Total operating expenses amounted to 4.1 billion Swiss francs against 4.5 billion francs in the third quarter of 2017.
“The conditions were difficult this summer,” said General Director of Credit Suisse Tidjane Thiam.
In addition to the usual seasonal slowdown, increased volatility in emerging markets and the volatility of the currencies of some developing countries led to a decrease in customer activity, he explained.
Among the three main divisions of the bank, the capital management division continued to generate the highest profits. Its adjusted profit before tax was 411 million Swiss francs against 382 million francs a year ago.
The division for trade in world markets recorded a loss before tax in the amount of 96 million francs, while its revenue decreased by 17% in annual terms to 1.04 billion francs.
Pre-tax profit from operations in the Asia-Pacific region fell by 19% in annual terms to 176 million francs, revenue fell by 9% to 811 million francs.
Credit Suisse said that sentiment had deteriorated in the third quarter. The bank expects this negative trend to continue in the fourth quarter. Nevertheless, a significant number of transactions are expected to be completed in the last quarter of the year, depending on market conditions, the bank said.
source: reuters.com
