Credit Suisse looking more like a wealth manager as profit beats expectations
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The logo of branch of Swiss banking group Credit Suisse.
PHOTO: AFP
ZURICH - Halfway through Mr Tidjane Thiam's three-year restructuring plan, Credit Suisse Group is looking more like a wealth manager.
Switzerland's second-largest lender on Friday (July 28) reported a 78 per cent increase in second-quarter profit, to 303 million francs (S$423.5 million), boosted by earnings at its two private banking units. Analysts had expected profit of 294 million francs, according to six estimates compiled by Bloomberg.
"Our focus on the global wealth management opportunity is paying off," Mr Thiam, 54, said in a statement from Zurich.
Credit Suisse is seeking to boost growth after cutting costs, eliminating thousands of jobs and reducing reliance on volatile debt trading in favour of more stable businesses such as wealth management.
UBS Group, Switzerland's largest bank, also on Friday reported a 14 per cent increase in second-quarter profit as its wealth management business got a boost from rising US interest rates.
The international wealth management unit, led by Mr Iqbal Khan, reported a 49 per cent increase in pre-tax profit to 365 million francs. At the private banking business in Asia, profit rose 67 per cent to 149 million francs from 89 million francs.
Revenue from equities trading slumped 29 per cent for a seventh straight quarterly decline, while fixed-income trading rose 4 per cent.
