Credit Suisse profits surge
(27 April 2017 – Australia) The firm's largest local entity, Credit Suisse Holdings Australia, reported a more than four-fold increase in net profit to A$68.4 million for the year ended 31 December.
The positive results surpass the previous post-GFC high of A$66.2 million in 2011.
That entity includes trading and institutional stockbroking, prime financing, private banking, capital raisings and corporate advisory services. The results need to be interpreted with caution, however, as they do not reflect Credit Suisse's entire Australia operations and include inter-company and inter-entity transfers.
The markedly improved results come as Credit Suisse has made some marquee hires in the past 18 months including now head of investment banking Michael Stock and equity capital markets stalwart Simon Cox. The accounts said Credit Suisse had increased headcount by 30 employees to 355 staff as at 31 December. Employee expenses dropped to A$130.2 million, despite an increased headcount. Total operating income, including gains on trading, dividend and fee and commission income, increased to A$450.4 million, from $381.1 million in 2015.
"Although these results only represent a part of our business, overall we had very strong growth across all our major businesses in 2016," said John Knox, chief executive of Credit Suisse Australia.
The bank this week reported a global first-quarter net income of 596 million Swiss francs (A$801.8 million), outstripping expectations the result would come in at 336 million francs.
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