Fourth quarter trends at Credit Suisse are expected to mirror that of the last quarter due to continued strength in its investment banking and wealth management business, according to an investor update that shared more strategic growth objectives.

Excluding a 327 million Swiss franc ($369 million) gain from its InvestLab sale, Credit Suisse’s profits were flat last quarter and the bank expects similar trends in the following one.

«In our Wealth Management businesses, stronger year-on-year transactional activity, particularly in Asia, is partly offsetting the adverse FX translational impact resulting from the strengthening of the Swiss Franc and some pressure on net interest income,» it said, though it added expected impact relating to York Capital Management and RMBS-related provisions.

«Our Investment Bank continues to perform well, with revenues ahead of 4Q19, in both USD and CHF terms.»

Growth Strategy 

The bank also unveiled its growth strategy moving forward with plans for «significant investment» across the board. 

In wealth management, the bank is looking to expand coverage, enhance its client offering and place focus on faster growing onshore markets such as China where it will seek to further accelerate its expansion. In investment banking, Credit Suisse will place focus on global trading solutions, expanding its offering alongside mergers and acquisitions.

And in infrastructure, the bank will enhance its tech platforms, invest in cloud and automation allow it to drive its regulatory agenda.

Bottom Line Targets

In addition to new sustainability goals, the bank will also look to increase its pre-tax income to 5 billion to 5.5 billion Swiss francs by 2023 while reconfirming its medium target of 10-12 percent return on tangible equity.

The bank will also accrue at least 4 percent dividend growth per annum and look to restart share buybacks with a total value of up to 1.5 billion Swiss francs by January 2021.

«We continue to believe wealth management is one of the most attractive segments in financial services, notably in Asia Pacific, and we also expect to further expand the connectivity between our Investment Bank and the Wealth Management-related divisions,» said Credit Suisse group CEO Thomas Gottstein. «Together, these initiatives should allow us to deliver […] in a normalized environment, subject to market and economic conditions, while maintaining a strong balance sheet.»