Credit Suisse recorded a strong second quarter in its private banking (wealth management) business, which recorded a pre-tax profit of SFr77...

Credit Suisse recorded a strong second quarter in its private banking (wealth management) business, which recorded a pre-tax profit of SFr779 million ($635.1 million), a 31 per cent year-on-year rise. The bank said net new assets amounted to SFr16.5 billion in the second quarter, but gave no breakdown of AUMs for its wealth management business – these are expected to have been hit by current market volatility. However, more than half of the growth in net new money was generated by the private banking business, which shows the importance of this segment to the bank’s overall business. Total assets under management fell by 1.8 per cent on a quarter-on-quarter basis to SFr1.3 trillion, which Credit Suisse blamed on adverse market conditions and currency fluctuations. Profit figures for the entire group were impressive, with net income of SFr4.7 billion recorded for the first half of 2006, a 68.3 per cent year-on-year rise. “We achieved a strong result in a market that experienced higher volatility and increasing investor caution,” said Oswald Grubel, the chief executive of Credit Suisse, in a statement. “This shows that our efforts to build a powerful integrated organisation are gaining momentum, while our business has proved its resilience in the face of a demanding environment.”