Credit Suisse third-quarter profit jumps 74 percent, lags estimates

Credit Suisse third-quarter profit jumps 74 percent, lags estimates
FILE PHOTO: Switzerland's national flags fly beside the logo of Swiss bank Credit Suisse in Zurich, Switzerland April 24, 2017. REUTERS/Arnd Wiegmann/File Photo -
Arnd Wiegmann(Reuters)
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ZURICH (Reuters) - Credit Suisse on Thursday posted a 74 percent year-on-year jump in third-quarter net profit as operating expenses fell faster than a 2 percent decline in net revenues.

Net income attributable to shareholders from July through September rose to 424 million Swiss francs (£327.7 million), missing the average estimate in a Reuters poll of analysts for 449 million francs.

"We expect our Wealth Management-related businesses – across Swiss Universal Bank, International Wealth Management and Asia Pacific WM&C – to continue to benefit from broad-based, client-led growth in the final quarter of the year," the bank said in a statement.

Net new money inflows - a closely watched indicator of future earnings in wealth management - totalled 10.3 billion francs across its three wealth management businesses.

Switzerland's second-biggest bank said the outlook for global economic growth in the final quarter of 2018 remained positive "despite continued geopolitical tensions surrounding global trade and the potential impact of monetary policy

changes by central banks.

"Sentiment turned more negative during the third quarter and we expect this to continue in the fourth quarter," it added, but said a healthy pipeline of transactions was expected to be completed in the final quarter depending on market conditions.

(Reporting by Michael Shields; Editing by John Revill)

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