Credit Suisse’s Asia Pacific unit saw assets under management overall slip in the first quarter despite positive net inflows, amid ongoing turbulence from markets in the region.
Although Credit Suisse registered net new assets of 2.5 billion francs ($2.6 billion) in its Asia Pacific unit, assets under management (AUM) fell 9.3 overall to 266.2 billion francs, according to its first quarter results.
This compares to net new assets of 7.9 billion francs in the first quarter of 2021.
The AUM drop could be attributable to poor market performance in the region and Credit Suisse separately said that it was undergoing de-risking measures for its wealth management business in the last 12 months, underlining notable concentration risk in Asia.
Loss-making Quarter
Less than two years after posting record quarterly profits in the APAC unit – which also announced a new CEO to succeed Helman Sitohang – Credit Suisse registered a loss this quarter of around 100 million Swiss francs.
This compares to a profit of 700 million francs in the same period a year ago.
Net revenues fell 13 percent to around 700 million francs while operating expenses were flat at around 800 million francs.
Leadership Change
Alongside its first quarter results, the bank also announced a change in regional leadership with APAC chief executive Helman Sitohang stepping down and succeeded by APAC co-head of investment banking Edwin Low, effective July 1 this year.
Sitohang will remain with the bank as a member of the APAC advisory council and senior advisor to group CEO Thomas Gottstein.
