Losses at Credit Suisse’s Asia Pacific financing group – a key unit for the one-bank model in the region – were a key contributor to lower profits in 2022.
Credit Suisse’s wealth management arm posted an adjusted pre-tax income of 249 million Swiss francs ($271 million) in 2022, according to its annual report, down 86 percent year-on-year.
Key drivers of the profit drop include lower revenues, asset outflows and higher operating expenses.
APAC Financing
Another notable contributor to lower profits at the wealth arm was from mark-to-market at the bank’s APAC financing group (AFG), totalling 31 million francs in the fourth quarter and 121 million francs for the full year.
The AFG losses account for 8 percent of the overall profit gap between 2022 and 2021.
One Bank
The AFG is key in delivering Credit Suisse’s so-called one-bank model by using an integrated approach to provide financing solutions for ultra-high net worth, entrepreneur, corporate, sovereign and institutional client segments in Asia Pacific.
«AFG provides trading, risk management, structuring and syndication & distribution capabilities for Asia Pacific's lending activities, spanning structured credit lending, share-backed and margin lending, real estate financing, real assets lending, lombard lending and portfolio financing,» according to the bank’s website.
