Credit Suisse posts unexpected profit rise as wealth management unit shows resilience in tough quarter

Credit Suisse has reported an unexpected profit rise as its wealth management division proved resilient in a “difficult quarter.”

The Swiss bank posted a fifth consecutive quarterly profit following a three-year restructuring plan but its investment bank continued to struggle.

The figures

Net income rose eight per cent to Sfr 749m, the bank’s highest quarterly profit since the third quarter of 2015.

The Swiss bank reported pre-tax profit of Sfr 1.06bn (£0.8bn) from Sfr1.05bn the previous year, considerably beating analysts’ expectations.

The bank’s wealth management led the way by bringing in Sfr9.6bn of net new assets – a five per cent quarterly growth – and taking the total assets under management to Sfr886.1bn.

But its investment banking unit continued to decline, with revenues falling by a third to Sfr356m.

The division posted a pre-tax of loss of $94m (£72m) compared to profits of $62m the previous year.

What Credit Suisse said

Chief executive Tidjane Thiam said: “In a challenging quarter, which was the first after the end of our three-year restructuring, we achieved our fifth consecutive quarter of positive income.

“The first quarter was one of three very distinct months: a challenging January, a limited recovery in February followed by a strong March, which was our second-highest revenue month in the last 39 months.

He added: ““Our wealth management franchise has proven resilient during a difficult quarter.”