The wealth management arm of Credit Suisse saw revenue reach CHF14.4bn in 2019, a 9% rise from the CHF13.3bn in 2018.
In Q4 2019, wealth management saw revenues up 23% year-on-year, from CHF3.3bn to CHF4bn.
International Wealth Management (IWM) saw its pre-tax income increase 25% year-on-year in 2019 to reach CHF2.1bn. For Q4 2019, it totalled CHF632m, a sharp increase of 54% year-on-year.
In Private Banking for Credit Suisse, pre-tax income for 2019 was CHF1.7bn, a 25% rise. Its net revenues were up 10% year-on-year for 2019 while the quarter saw it up 27%.
Operating expenses for 2019 were considered “stable” compared to 2018, but in Q4, they were up 9% year-on-year. This was attributed to higher discretionary compensation expenses.
Credit Suisse 2019 highlights
Credit Suisse as a whole saw pre-tax income of CHF4.7bn, 40% up from the CHF3.4bn in 2018.
Net income reported was CHF3.4bn, a nice 96% rise from CHF2bn in 2018.
There were significant items, including the gains from the revaluation of its equity investment in SIX Group. In addition, there was the transfer of the InvestLab funds platform to Allfunds Group.
Tidjane Thiam, outgoing chief executive of Credit Suisse Group, said: “When I joined Credit Suisse in 2015, we initiated a deep, three-year long restructuring programme, with the intention of creating sustainable shareholder value. The aim was to grow our unique wealth management franchise, taking advantage of a secular growth in Global Wealth. Since 2015, we estimate that Global Wealth has grown by CHF110.5trn or 44%. We decided to put a particular emphasis on UHNW clients, where we could fully leverage our investment banking capabilities and offer institutional quality services to entrepreneur clients.
“Our objective was to become a bank generating profitable, compliant, quality growth. From 2016 to 2019, we grew out Wealth Management businesses and attracted new new assets of CHF121bn, and out Wealth Management-related pre-tax income grew at a double-digit rate for four successive years, going from CHF2.7bn in 2015 to CHF4.7bn in 2019, excluding the InvestLab transfer and SIX revaluation gains.”