Swiss banking giant Credit Suisse Group has posted net income attributable to shareholders of CHF41m in the third quarter of 2016, down 95% compared to CHF779m in the year ago quarter.
The bank's pre-tax profit for the quarter was CHF222m, a 74% slump from CHF852m in the corresponding period of 2015.
Net revenues dropped 10% to CHF5.39bn from CHF5.98bn a year ago. Total operating expenses during the quarter increased 2% year-on-year to CHF5.12bn.
Credit Suisse CEO Tidjane Thiam said: “In 3Q16, we remained focused on implementing our strategy with discipline. The hard work of our teams across our divisions has allowed us to confirm the positive trends that were visible in our 2Q16 results.”
The bank has three geographic divisions – Asia Pacific (APAC), Swiss Universal Bank (SUB) and International Wealth Management (IWM).
The APAC unit generated adjusted pre-tax income (PTI) of CHF175m for the third quarter of 2016, a rise of 8% from CHF162m during the same quarter in 2015. Adjusted net revenues were CHF917m, up 4% compared to CHF885m. The unit generated net news assets (NNA) of CHF4.6bn during the period, while AuM reached a record CHF169bn at the end of the quarter.
The SUB division posted adjusted PTI of CHF431m in the third quarter of 2016, a 7.7% increase from CHF400m in the comparable quarter of 2015. Adjusted net revenues at the unit surged 22.2% to CHF1.66bn from CHF1.36bn.
Adjusted PTI at the IWM arm of Credit Suisse was CHF241m, a fall of 2.4% from CHF247m a year ago. The division's adjusted net revenues dipped 1% to CHF1.08bn.
Thiam added: “During 3Q16, we continued to make progress in implementing our strategy. We have reduced costs significantly and continued to grow profitably in our chosen markets, with cumulative NNA across Wealth Management up 40% year on year. Disciplined capital management, organic capital generation and the disposal of assets and businesses announced in March 2016 have allowed us to continue to invest in higher return areas.
“Looking ahead, we expect market activity to continue to be influenced by geopolitical and macro-economic uncertainty over the next several quarters and the outlook to remain challenging.”