Mubasher: Credit Suisse saw a 38% plunge in third quarter (Q3) net profit, as its wealth management business was hurt by significant foreign exchange headwinds, Business Insider reported on Thursday.
The Swiss lender's net profit came in at 546 million francs (approx. $600 million) in the July to September period, below the 680.7 million francs ($747 million) analysts polled by Bloomberg predicted.
The bank, however, said the large drop was because, in the same period last year, it received a 327 million franc ($358 million) boost from selling its InvestLab fund platform to Allfunds group.
The international wealth management business saw a 10% yearly decline in revenue to 2.5 billion francs ($2.7 billion).
Unlike many European lenders, Credit Suisse said it would pay the second half of its 2019 dividend to shareholders and plans a 5% annual dividend growth for next year.
The bank further expected the COVID-19 environment to continue result in elevated levels of transactional and trading activity across its wealth management and investment banking businesses, as clients respond to the macroeconomic uncertainties.