It marks a 38% drop from net income for the third quarter of last year, although the bank’s results in that period were bolstered by the sale of its InvestLab fund platform to the Allfunds Group.
In the second quarter of 2020, net profit was 1.16 billion Swiss francs.
Speaking to CNBC on Thursday, Thomas Gottstein, CEO of Credit Suisse, said it was a “decent quarter.”
Other highlights of the quarter:
- Net income fell 2% to 5.2 billion Swiss francs, from 5.3 billion francs a year ago;
- The CET 1 ratio (measure of bank solvency) reached 13% against 12.4% a year ago.
The performance of Credit Suisse’s wealth management division disappointed, as strong transaction-based income was more than offset by lower fees and net interest income. The turnover of the closely watched division was down 10% year over year.
However, the bank’s investment banking division held up better, with net sales up 11% in the third quarter compared to last year, thanks to “constructive” market conditions and client activity. higher, mainly in Asia.
“Revenue in Asia now represents 20% of our overall global revenue, which is one of the highest of our peers… it’s very clear that Asia is much stronger than the rest of the world right now. Gottstein told CNBC’s Geoff Cutmore.
Fixed income sales and trading income increased 10% year over year, while equity sales and trading income grew 5%.
Going forward, the Swiss bank said it will support its customers “through the persistent COVID-19 pandemic and the resulting economic challenges.”
“We expect this environment to continue to drive high levels of transactional and trading activity, both in our wealth management and investment banking businesses, as our clients react to macroeconomic uncertainties,” the bank said in a statement.
Credit Suisse added that it plans to pay the second tranche of its 2019 dividend and resume its share buyback program in January, with the aim of repurchasing between CHF 1 and 1.5 billion of shares for the whole year.
Credit Suisse shares have fallen about 30% since the start of the year.