Credit Suisse reported a 42% drop in pre-tax
income in its wealth management business to $1.5bn and a 4% drop in
average assets under management (AUM) to CHF792bn ($868bn) in
2011.
Net revenues were also down 8% to CHF9bn in
the 12 months to 31 December, driving gross margins down six basis
points (bpt) to 114bpt.
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The world’s fourth largest wealth manager said
the AUM drop was due to lower equity markets and the lower average
exchange rate of the US dollar and the euro against the Swiss
franc.
On a US dollar basis however, AuM stayed
stable compared to 2010 published figures.
US negotiations ongoing
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By GlobalDataThe Swiss bank provided little insight into
its ongoing negotiations with US authorities over investigations
into its former cross border services to US clients.
“This continues to be a matter that we
together with governmental authorities are working to resolve.
Credit Suisse is strongly supportive of a resolution acceptable to
both the US and Switzerland,” Credit Suisse said in its interim
report.
“We continue to cooperate with the authorities
both in the US and Switzerland to resolve this matter in a
responsible manner that complies with our legal obligations.”
Credit Suisse set aside CHF478m in legal
provisions to resolve its cross border tax issues with the US and
German in the third quarter, which contributed to its 2011 pre-tax
income slump.
CHF162bn in net inflows since
2007
These negative results were offset by
continued net new money inflows into its wealth management arm.
Since 2007, cumulative inflows have reached
CHF162bn, with CHF37.8bn net inflows in 2011, driven by strong
inflows from emerging markets and the ultra high net worth client
segment.
Net new assets in Asia-Pacific grew 13% in
2011.
