Asian Wealth Stalls at Credit Suisse

Reuters

Profits from its Asia private bank slid 8 percent to 196 million francs, as revenue also fell - a drop the Helman Sitohang-led unit was easily able to offset by cutting jobs and other spending as well as through lower provision for credit losses.

This helped cushion the impact of a 7% drop in markets revenues to Sfr1.5bn that was largely driven by a tough quarter for its solutions business, which includes structured and derivatives products.

"We are highly concentrated of course in the FX (foreign exchange), we are one of the leaders in the FX business and volatility levels on all major currencies has been extremely low so we are suffering on that side", UBS Chief Executive, Sergio Ermotti, told CNBC on Friday. In February it warned there would be thousands more redundancies to come. In the run-up to the latest earnings season, the well-regarded JPMorgan banks analyst Kian Abouhossein noted the impact of Credit Suisse's restructurings and identified it as his "preference" for the quarter. "The cost of risk is under control and was down significantly".

Having raised 4 billion francs from shareholders this year, Credit Suisse's common equity Tier 1 (CET1) ratio rose to 13.3 percent from 11.7 percent at the end of the first quarter.

European banks flooded the market with strong results on Friday, July 28, as France's BNP Paribas SA (BNPQF), Swiss lenders UBS AG (UBS) and Credit Suisse AG (CSGKF) and Spain's Banco Santander SA (SAN) all posted second quarter profits ahead of analyst expectations.

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