Private banking and wealth management pre-tax income at Credit Suisse stood at SFr917 million ($978 million) in the second quarter of 2013, up from SFr881 million in the previous three months but down from SFr977 million a year ago.

Private banking and wealth management pre-tax income at
Credit Suisse stood at SFr917 million ($978 million) in the second quarter of
2013 (on a reported basis), up from SFr881 million in the previous three months but down from SFr977
million a year ago, the Zurich-listed bank said today.

The cost/income ratio at this part of Credit Suisse was 71.9
per cent at the end of June this year, a touch higher than a year ago (70.1 per
cent). Net revenues were SFr3.424 billion in the latest quarter, up from
SFr3.398 billion in the same quarter a year ago.

The private banking and wealth management arm reported SFr46
million in provisions for credit losses in Q2, compared with SFr40 million in the
same quarter of 2012.

Credit Suisse, which likes to promote its “one bank”
qualities of bringing together investment banking, wealth management and other
functions, said in the second quarter the firm generated SFr1.191 billion of “collaboration
revenues”, equating to 17 per cent of the group’s net revenues in the second
quarter of this year.

Across the bank as a whole, it reported core-pre-tax income of
SFr1.534 billion, up 38 per cent from the same quarter of 2012. Underlying net
income attributable to shareholders was SFr1.041 billion, up from SFr815
million a year earlier.

The bank said it has achieved in the first six months of
2013, on an annualised basis, expense savings of SFr2.7 billion and is on track
to achieve a cost run-rate reduction of SFr4.4 billion by the end of 2015.

Brady Dougan, commenting on the economic background for the
results, said: “The transition to higher interest rates led, in the latter part
of the second quarter, to increased market volatility and reduced client
activity. This market volatility continued into July, although more recently we
have seen signs of stabilisation in our major markets. In the longer term, the
transition to higher rates will benefit our business, both our global private banking
and wealth management franchise and our client-focused, capital-efficient
investment banking business.”

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