The bank is proposing a cash distribution of 0.2776 Swiss francs per share for the financial year 2019, in line with its goal of increasing the ordinary dividend per share by at least 5 percent per annum.
Credit Suisse recorded a 40 percent increase in group pre-tax income, climbing to 4.7 billion francs from 3.4 billion in 2018, as well as net income of 3.4 billion francs in 2019 compared to 2 billion francs in 2018, a 69-percent increase, according to full-year 2019 results released by the bank on Thursday morning.
This includes gains from the revaluation of its equity investment in stock exchange operator SIX and from the transfer of funds platform InvestLab to Allfunds Group, which were partially offset by major litigation provisions, the statement said.
In 2019, Credit Suisse attracted 79.3 billion francs in net new assets, a record level since 2013. Its fourth-quarter pre-tax income of 1.2 billion francs was up 104 percent compared to 595 million in 4Q18, marking the 13th consecutive quarter of year-on-year pre-tax income growth.
Successful Strategy
In a statement accompanying the results, outgoing CEO Tidjane Thiam, who steps down tomorrow following a drawn-out spying scandal, noted the success of the bank's three-year-long restructuring program under his leadership, and the positive outcome of the new organizational structure and focus on UHNW clients, put in place when he came on board in 2015.
«I am proud of what Credit Suisse has achieved during my tenure. We have turned Credit Suisse around, and our 2019 results show we can be sustainably profitable,» Thiam said, thanking his colleagues, clients and stakeholders.
Credit Suisse has attracted close to 200 billion francs in net new assets over the past four years, bringing group assets under management to a record 1.5 trillion francs.
APAC Income Grows
Pre-tax income in Asia Pacific for 2019 grew 36 percent year-on-year, reaching 902 million francs, driven by positive operating leverage. However, Credit Suisse suffered withdrawals from wealthy mainland Chinese clients in the fourth quarter. The region saw higher revenue in private banking – but only just eked out a break-even in capital markets.
It also saw a record fourth quarter, with a pre-tax income of 235 million francs, driven by revenue growth across its Wealth Management & Connected (WM&C) and Markets businesses. The region delivered a return on regulatory capital of 16 percent for 2019.
Assets under management at its Private Bank in APAC currently stand at 220 billion francs, with a net new assets growth rate of 4 percent.
Stretch Goal
For the year ahead, the bank wants to continue on its course of offering bespoke solutions to its clients, leveraging on its wealth management and investment banking capabilities. It also aims to lift return on tangible equity (ROTE) from 9 percent currently to 10 percent through cost discipline, which should drive positive operating leverage.
«Our regionalized approach allows us to stay close to our clients whilst capturing global synergies, where relevant. We are firmly committed to deliver against the ambitions set out at the 2019 Investor Day in London: we aim to achieve ROTE around 10 percent,» said Thomas Gottstein, CEO designate.
Positive Tone
Despite various geopolitical headwinds and uncertainties caused by the coronavirus, CEO-designate Gottstein assured investors that the underlying fundamentals of the global economy remain intact.
«We will continue to execute with discipline to maintain our strong momentum in 2020 and intend to grow revenues in our Wealth Management-related businesses, increase profitability in our Markets businesses, maintain cost discipline and continue to optimize our operating model,» he said.
