Published: Wed, April 25, 2018
Finance | By Loren Pratt

Ubs Group Ag (UBS) Stake Held by Credit Suisse Ag

Ubs Group Ag (UBS) Stake Held by Credit Suisse Ag

Swiss bank Credit Suisse posted a 57 percent rise in first-quarter pre-tax profits on Wednesday, beating analyst expectations amid an ongoing restructuring plan.

Swiss rival UBS on Monday posted 1.5 billion francs in quarterly net profit as its investment bank navigated volatility better than Wall Street peers, snatching up a bigger share of corporate deals and placements within a declining market.

Net new cash flows of Credit Suisse, an indicator of future profit, amounted to 14.4 billion CHF in the three wealth management businesses of the bank, the highest amount in seven years. The company said it stands to benefit from the growth of the global economy both in mature and developing markets across geographies.

"With these first-quarter results, we got off to a good start in our third and final year of restructuring, and we are looking ahead to the future with confidence in our new business model and in our execution capabilities", said CEO Thiam.

Asia accounted for about a quarter of the Swiss institution's total pre-tax income, at 1.054 billion francs.

Wealthy Asian clients bolstered Credit Suisse's profits in Asia in the first quarter, even as income from advising big corporates and underwriting their stock and bond issues slipped from the end of a year ago.

Its markets business - equities and fixed income sales and trading, and prime brokerages - swung back into profitability, with pre-tax income of 29 million francs, compared with a pre-tax loss of 54 million francs a year-ago at this stage, and a loss of 53 million francs in Q4 2017.

By contrast, Credit Suisse suffered a 17 percent sequential drop in advisory, underwriting and financing income, which was set against a rise in fees from advising on mergers and acquisition in Asia.

In the quarter, assets under management were 1.38 trillion francs, up 5.8 percent from 1.30 trillion francs a year ago. Switzerland's second-largest bank isn't just outmaneuvering UBS with investors: Credit Suisse seems to have traded places with its far larger rival in the heart of lungs of Swiss banking.

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