Credit Suisse on Thursday announced a 38% drop in third-quarter earnings, as the Swiss lender saw its wealth control activities affected by “significant anti-currency winds. “
The bank’s net profit was 546 million francs between July and September, less than the 680. 7 million francs ($747 million) estimated through analysts surveyed through Bloomberg.
But Credit Suisse said the sharp fall is due to the fact that at the same time last year it gained a build-up of 327 million francs ($358 million) thanks to the sale of its InvestLab funds platform to Allfunds Group.
Here are the key figures:
Shareholder-attributable profits: 546 million francs to 680. 7 million francs estimated
Net income: 5. 2 billion francs ($5. 7 billion) compared to an estimated 5. 3 billion francs ($5. 8 billion)
Provisions for non-eligible loans: 94 million francs ($103 million) versus about 243 million francs ($266 million)
UBS, the bank’s biggest rival in the region, performed much better, posting a 99% jump in quarterly profit to $ 2. 1 billion before this week.
The foreign wealth control business, its biggest weakness this quarter, saw its turnover drop by 10% to 2. 5 billion francs ($2. 7 billion) a year ago.
The Swiss franc rose almost 3% against the dollar in the third quarter of the year, peaking in more than five years, meaning that any non-Swiss investor would have noticed a drop in its source of income in local currency. .
Unlike many European lenders, Credit Suisse has said it will pay part of its 2019 dividend to percentage shareholders at the time and expects an annual dividend expansion of 5% for next year. He also announced that he will restart his percentage repurchase plan to generate percentage earnings below. expenditure of up to 1. 5 billion francs ($1. 6 billion).
Last quarter, Credit Suisse announced that it would merge its commercial and investment banking department and combine its threat control and compliance functions. % and 10% accumulated in percentage and constant source of sales revenue, respectively.
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