ZURICH: Credit score Suisse Group AG on Thursday posted a 38% fall in third-quarter internet revenue, as a surge in funding banking did not offset a slowdown in wealth administration, whereas a one-off enhance final yr left this yr’s determine wanting flat.
Revenue reached 546 million Swiss francs ($601.98 million) in July-September. That in contrast with the 572 million franc median of 17 analyst estimates compiled by the Swiss financial institution.
A yr earlier, Credit score Suisse acquired a 327 million franc income enhance from the sale of its InvestLab fund platform.
In an announcement, the financial institution mentioned it’s centered on supporting shoppers “by means of the persisting COVID-19 pandemic and the resultant financial challenges. We’d anticipate this atmosphere to proceed to lead to elevated ranges of transactional and buying and selling exercise.”
Chief Govt Thomas Gottstein in July introduced a broad spherical of value cuts, together with merging the worldwide markets buying and selling division and advisory-focused funding banking and capital markets unit, as his first main strategic stamp on the financial institution.
The newly merged funding banking unit noticed pre-tax revenue rise to 370 million Swiss francs, with elevated buying and selling serving to fairness and glued earnings gross sales and buying and selling surge 5% and 10%, whereas capital markets and advisory income rose 33%.
A drop in income at its worldwide wealth administration unit, a sore level within the second quarter, was extra pronounced than analysts had anticipated.
($1 = 0.9070 Swiss francs)
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