The Swiss bank’s Asia Pacific unit registered a 34 percent drop in pre-tax profits as the pandemic continues to create pressure for credit losses and transaction volumes.
Credit Suisse’s APAC unit posted a pre-tax income of 177 million Swiss francs ($195 million) in the third quarter, a 34 percent annual drop and a 10 percent quarterly dip, according to its latest results.
«Our operating environment continues to be significantly influenced by the global impact of the COVID-19 pandemic and by the reactions of investors and central banks,» the bank said.
«This is expected to continue to impact our results, including further potentially adverse impacts on credit losses and mark-to-market losses in our financing business and on transaction volumes.»
InvestLab Sales
Revenues were flat and credit loss provisions moderated sharply to 45 million Swiss francs in the third quarter compared to 86 million Swiss francs in the second quarter.
A notable contribution to revenue was the sale third party fund platforms InvestLab to Allfunds, which led to 98 million Swiss francs in gains.
Client Assets Up
Client assets climbed 2.7 billion Swiss francs compared to the last quarter to reach 218.5 billion Swiss francs. Unfavorable FX movements were offset by positive market movements and net new assets of 2.2 billion Swiss francs, mostly from Greater China and Southeast Asia inflows.
The bank in Asia shed some 150 staff including 20 relationship managers in the quarter.
Overall, the regional unit accounted for more than 20 percent of Credit Suisse’s global revenues generated in the period.
