As of the end of the fourth quarter 2016, assets under management in Asia Pacific were slightly lower compared to the previous quarter, Credit Suisse reported on Tuesday.

In Asia Pacific private banking in the fourth Quarter 2016 the bank reported net new assets of 0.7 billion francs which reflected inflows primarily from Greater China and Australia, partially offset by significant outflows in connection with the «regularisation of client assets» of 1.4 billion francs, mainly in South East Asia.

As of the end of 2016, assets under management in Asia Pacific of 168.3 billion francs were 17.9 billion francs higher compared to the end of 2015, mainly reflecting net new assets of 14.6 francs billion and favorable foreign exchange-related and market movements. 

«2016 was the first full year of implementing our new strategy and it was a challenging and busy 12 months. Thanks to our strong client franchise and the dedication of our teams, we have made good progress on our key objectives,» said Tidjane Thiam, Chief Executive Officer of Credit Suisse.

Higher Total Operating Expenses

Income before taxes in Asia Pacific private banking in the foruth Quarter 2016 came in at 96 million francs an increase of 45 percent compared to the previous quarter, reflecting lower provision for credit losses and higher net revenues, partially offset by higher total operating expenses.

Compared to the same quarter in 2015 income before taxes increased 100 percent due to higher net revenues, partially offset by higher total operating expenses and higher provision for credit losses. Adjusted income before taxes of 97 million francs increased 41 percent compared to the third quarter of 2016 and 76 percent when compared to the same period in 2015.

Net revenues increased to 372 million francs a rise of 8 percent compared to the third quarter of 2016. This was primarily due to increased recurring commissions and fees. 

Marginal Headcount Increase 

Transaction-based revenues decreased 5 percent to 114 million francs, mainly due to lower brokerage and product issuing fees, partially offset by higher fees from foreign exchange client business and higher corporate advisory fees arising from integrated solutions.

In Asia Pacific at the end of the fourth quarter of 2016 the number of Relationship Managers (RM's) decreased slightly down to 640 from 650. For the full year (580) the RM count was up by 60 in the region.

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