Sunday, 22nd November 2009

 

11 February 2009 - David Bain

Credit Suisse wealth results hit by clients deleveraging

Credit Suisse’s global wealth management business was hit by clients drawing down money to pay off debt after the Lehman Brothers failure, with net new money growing by just SFr2bn in the last quarter of 2008.

New money flows for the entire year were SFr42.3bn, down SFr8bn from the year before. Despite the growth of new money substantially falling in the fourth quarter, Credit Suisse performed much better than its big Swiss rival UBS, which saw outflows of more than SFr111bn from its wealth units last year.

Switzerland’s second largest bank said pre-tax profit for its wealth business in 2008 fell 37% to SFr2.4bn as revenue growth slowed and expenses rose.

A spokesman said: “We are pleased with the results, given the sharp determination in the world economy and are convinced we have a strong franchise.”

He added that overall 340 relationship managers had been recruited last year.

“At least another 600 will be hired during the next two years.”

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Brummel

Relocation, relocation, relocation

Banks have never been shy of firing staff at the merest whiff of a downturn. First the fat, then the muscle and finally the bone. In the past, cuts have been so deep that firms have found it hard to benefit when the markets rebounded, paying over the odds to restaff at speed. Such wild oscillations in staffing numbers are known as “doing a Merrill”.

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