After a spectacular first half of 2020, Credit Suisse’s pre-tax profit for Q3 was down 30 percent year-on-year, as good performance in its investment bank was offset by slower growth in the wealth and private banking business lines.
Pre-tax group profit for July through September was CHF 803 million, down 30 percent from the CHF 1.14 billion recorded in Q3 2019.
Taking the first nine months of the year together, the group posted pre-tax profits of CHF 3.56 billion, up 1 percent year-on-year.
Credit Suisse said its wealth management businesses recorded "continued underlying momentum" in the third quarter, despite net revenues down 10 percent year on year to CHF 2.3 billion, as a strong year-on-year increase in transaction revenues failed to offset lower recurring fees income.
The private bank within international wealth management (IWM) – which serves wealthy clients in Europe, the Middle East, Africa and Latin America saw pre-tax income or profits fall 13 percent year-on-year to CHF 236 million, a result of lower exchange rates and foreign exchange impacts, the bank said.
Net new assets of CHF 6.9 billion were up 8 percent on an annuali...