Despite a drop in global profits, Credit Suisse’s Asia Pacific unit bucked the trend and posted stellar results in the second quarter.
Credit Suisse’s APAC unit registered a pre-tax income of 250 million Swiss francs ($275 million) in the second quarter, according to the bank’s latest results, marking a 28 percent year-on-year increase.
Net revenue stayed stable at 798 million Swiss francs (1 percent decrease) as lower transaction-based revenue and lower net interest income were offset by higher recurring commissions and fees as well as higher revenue elsewhere. Operating expenses inched up slightly to 542 million Swiss francs (3 percent increase).
AUM Drop
Compared to the last quarter, assets under management fell 5.6 billion Swiss francs to 236.3 billion Swiss francs which the bank attributes primarily to net asset outflows and unfavorable foreign exchange movements.
Net asset outflows of 6.1 billion Swiss francs were driven mainly from Southeast Asia, Japan and China alongside de-risking measures taken during the second quarter.
Bright Spot
Profit growth from the APAC unit contrasts starkly with the bank's global results of 813 million Swiss francs of pre-tax income – a 48 percent decrease.
This was driven in no small part by the collapse of family office Archegos which resulted in 653 million Swiss francs in related losses and disclosed findings from a probe the claimed failings but no criminal wrongdoing by the bank.
