Credit Suisse's profit for the third quarter rose, as restructuring costs fell away, trading boomed, taxes fell, and it booked a gain from selling a fund platform.
The Swiss bank said net profit rose to 881 million Swiss francs ($885 million), more than doubling on the year. The increase followed a 327 million franc fillip from selling Investlab, a fund platform, a lower tax bill, and a boom in debt trading. Credit Suisse is also breathing easier because its funding costs are lower after paying back a crisis-era instrument.
The report comes amid a maelstrom following the exit of top private banker Iqbal Khan for Credit Suisse, which led to a damaging spy scandal and questions of succession. Credit Suisse is struggling to return focus among employees and the public towards its daily business under CEO Tidjane Thiam, though it continues to enjoy the vocal support of one of its biggest shareholders.
Caution Ahead
Without the boot from Investlab, Credit Suisse's revenue edged just 2 percent higher to 5 billion francs. While trading flourished during a quarter marked by volatility, Credit Suisse's investment bank and capital market arm swung to a loss. Its private bank, now led by Philipp Wehle, won 9.5 billion francs in fresh funds, or nearly four percent growth on its existing asset pile.
The bank warned that it expects business to slow towards the end of the year due to the holiday season, and also expects the fallout to its business from a U.S.-Chinese trade spat as well as the U.K.'s exit from the European Union. The mix will lead to more caution by its clients next year and in 2021, Credit Suisse said.
