Asia Pacific profits at Credit Suisse inched higher in the third quarter despite ongoing China market turbulence and dented investor sentiment in the region.
Excluding significant items which include an Allfunds Group equity investment revaluation of $42 million, Credit Suisse’s APAC pre-tax income grew 5 percent to $206 million, according to the latest results.
Including significant items, the bank’s regional pre-tax profit grew 27 percent.
Flat Revenues
As a result of volatile markets in Greater China and weaker sentiments, the bank posted $795 million in net revenue, 1 percent lower year-on-year, driven by lower net interest income which was offset by higher recurring commissions, recurring fees and transaction-based revenues.
Reduced risk appetite and client deleveraging led to a 14 percent drop in net interest income.
On the other hand, recurring commissions and fees were up 19 percent, driven by mandate and fund volumes. Transaction-based revenues were also up 4 percent due to higher fees from increased M&A activity offset by weaker private client activity and lower revenues in GTS (global trading solutions).
China Expansion
Adjusted operating expenses were 5 percent higher to $583 million mainly due to continued hiring of relationship managers, risk and controls, sustainability initiatives and other investments, particularly in China.
The bank also registered $3.2 billion of net new assets for the APAC region.