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Credit Suisse Asia Pacific announces strategy to double profitability by 2018

Credit Suisse announced Wednesday that it was investing more capital and resources into the Asia-Pacific region, and that it was appointing Helman Sitohang, currently chief executive officer (Asia Pacific), to the bank’s executive board. The announcement came following a global strategic review of Credit Suisse Group.

This announcement came as Credit Suisse reported record results for Asia Pacific, with revenues rising to CHF3 billion, up 17 percent and pre-tax income is CHF1.1 billion, up 48 percent, for the first nine months of the year.

The results were driven by continued strong performances across the bank in Asia Pacific and it’s highly successful ‘One Bank’ model, under which it provides integrated Private Banking & Wealth Management and Investment Banking products to its clients.

“Credit Suisse Asia Pacific generated record pre-tax income for the first nine months of the year. Asia Pacific now accounts for 15 percent of total Credit Suisse revenues and 30 percent of pre-tax income. This is a strong performance, particularly given the current market conditions and demonstrates the resilience of our business model and our ability to generate profitability through the cycle,” Sitohang said.

Credit Suisse Asia Pacific has now set a target to double pre-tax income and client assets under management in the region by the end of 2018. Currently, Credit Suisse has CHF133 billion of client assets under management and in the first nine months gathered CHF15 billion of net new assets, representing 36 percent of the bank’s total Private Banking net new assets.

“We are making a significant investment of capital and resources into Asia Pacific. Our focus is on being a partner to our High Net Worth Individual, Entrepreneur and Institutional clients and supporting them in their growth ambitions. We plan to expand further in our core markets, capitalizing on our strengths in South East Asia and building out our China franchise, while maintaining a consistent culture of compliance and controls,” he explained.

“Our ambition is to be the Trusted Entrepreneurs Bank in Asia Pacific, and a key destination for talent.”

According to the “Family Business Model 2015” report published by Credit Suisse Research Institute, 57 percent of new wealth in the Asia Pacific is driven by first generation entrepreneurs and family ownership of listed companies is expected to grow in many markets in the region as more wealth is created.

“As wealth in the region grows and financial markets deepen, we see significant opportunities to help our clients capture this growth. Our track record of performance, our culture of partnership and our strong client franchise gives Credit Suisse in Asia Pacific a strong platform. With the additional investment in the region, we expect to further build on this platform to the benefit of our key Entrepreneur and Investor clients,” Sitohang concluded.

Updated : 2021-09-28 13:05 GMT+08:00