Neil DennisCredit Suisse reported forecast-beating third-quarter earnings on Thursday as the restructuring programme it announced in 2015 focusing on wealth management delivered strong results.
The Swiss group reported a 90% rise in adjusted pre-tax income of SFr620m in the July-September period. Net income attributable to shareholders rose to SFr244m, up from just SFr41m in the same period a year ago and beating analysts’ forecasts of SFr224.6m.
Other Q3 highlights
- Adjusted net revenues of SFr5bn down 2% year on year
- Adjusted total operating expenses of SFr4.4bn, down 9% year on year
- Reported pre-tax income of SFr400m, up 80% year on year
- Adjusted pre-tax income of SFr620m, up 90% year on year
- Net income attributable to shareholders of SFr244m, up from SFr41m in 3Q16
CEO comment
Tidjane Thiam, chief executive said: "While the outlook for global economic growth has continued to improve, uncertain geopolitical developments, central bank policies and the magnitude and timing of reforms in the US, as well as historically low levels of volatility, have impacted client activity levels, which remained muted.
"In addition, activity levels in the third quarter of 2016 were unusually strong due to the combination of the effects of Brexit and the US elections."
Market reaction
Shares of Credit Suisse on the Swiss stock exchange were 3.1% higher in early trade at SFr16.11.