Credit Suisse wealth unit pre-tax profit up 40% in 2012, net new assets in free fall

Credit Suisse’s wealth management division reported pre-tax income of CHF2bn ($2.1bn), up 40% compared to 2011, but still short of its 2010 levels.

Operating expenses of the wealth management unit went down 10%, from CHF7.6bn to CHF6.8bn.

Assets under management rose by 6.4% over the year, reaching CHF798.5bn by the end of 2012.

However net new assets from wealth management clients continued to fall. In 2010 net new money stood at CHF40.6bn, it slid to CHF37.4bn in 2011 and reported CHF19.0bn in new assets last year. This represents a sharp fall of 49.2% on a year-on-year basis.

Credit Suisse remained evasive regarding the reasons behind the big drop only commenting on outflows in Western Europe and Switzerland. The bank said inflows came from emerging markets and from UHNWI client segment.

Sign up for our daily news round-up!

Give your business an edge with our leading industry insights.

Sign up