Credit Suisse posted a rise in APAC profits but saw a net asset outflow from the region due to efforts by clients and the bank itself to reduce risk-taking.
Credit Suisse’s Asia Pacific unit recorded a profit of 1.01 billion Swiss francs ($1.09 billion) in 2021, according to its annual results, marking a 22 percent year-on-year increase.
While operating expenses were 8 percent higher to 2.43 billion Swiss francs – driven by investments in hiring relationship managers, compliance and digitalization initiatives – credit loss provisions fell 88 percent.
Net revenues were also 5 percent higher to 3.55 billion Swiss francs driven by higher recurring commission, recurring fees and transaction-based revenue – a strong first quarter offset weaker performance thereafter caused by negative China market sentiments and interest rate uncertainties.
«Credit Suisse delivered strong profitability in APAC for 2021, reflecting the region’s firm position as a key growth engine for the bank,» said APAC chief executive Helman Sitohang. «We are fully focused on bringing the whole of our bank to clients by leveraging our differentiated integrated model, and we remain steadfast on investing in our leading franchises across the region.»
Asset Outflow
Despite the positive bottom line, Credit Suisse saw a net asset outflow of 1.3 billion Swiss francs for the year, including an outflow of 3.2 billion Swiss francs in the fourth quarter alone.
According to the bank, this mainly reflected outflows in North Asia driven by client de-leveraging and de-risking measures taken during the year.
Globally, Credit Suisse posted a pre-tax loss of 552 million Swiss francs.
