Credit Suisse looks to put more funds in Asia

MANILA, Philippines - Credit Suisse announced yesterday it is investing more capital and resources into the Asia Pacific region, and that it is 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.

The announcement came as Credit Suisse reported record results for Asia Pacific, with revenues rising to CHF 3 billion, up 17 percent and pre-tax income is CHF 1.1 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 its highly successful ‘One Bank’ model, under which it provides integrated private banking and wealth management and investment banking products to its clients.

Sitohang said: “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 28 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.”

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 CHF14.7 billion of net new assets, representing 55 percent of the bank’s total private banking net new assets.

Sitohang said: “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 individuals, entrepreneurs and institutional clients and supporting them in their growth ambitions. We plan to expand further in our core markets, capitalizing on our strengths in Southeast Asia and building out our China franchise, while maintaining a consistent culture of compliance and controls.

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

According to the Credit Suisse Research Institute Family Business Model 2015 report, 57 percent of new wealth in 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 Asia Pacific 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 said.