Credit Suisse 'generated profitable growth and continued to drive positive operating leverage through both revenue growth and cost reductions' increasing the return on capital in every division, particularly wealth management, according to the bank's annual results.

The bank was the fifth most active bond provider in 2017, with a 3% market share (2,650 products) and US$9bn in sales, behind UBS, Vontobel, Barclays and HSBC, according to SRP. Most of the bank's hedging was in the US (1,409 products), followed by Switzerland (270), and Germany and Austria (231). The bank was an active counterparty provider in Taiwan (122 products), Sweden (84), the UK (38) and Japan (31). The bank was also an active distributor of structured products, with over 1,800 structures marketed worth $4bn. Its main outlet in 2017 was the US, where 887 of its products were sold, followed by Switzerland (658 products), and Germany and Austria, where it cross-sold 255 products. In Switzerland, it was behind the third best performing product of 2017, a discount certificate that returned 43.23%.

The bank's global markets reported adjusted pre-tax income increased 118% to $620m in the last financial year, and adjusted net revenues of $5.6bn, up 5% on the year, 'reflecting substantially higher securitised products and increased debt and equity underwriting revenues, partially offset by persistently low trading volumes and a low volatility environment, which negatively [affected] the bank's macro products and equity derivatives.'

It has set a net revenue target of over $6bn for 2018, reported 'a resilient performance in a challenging quarter' in the fourth quarter of last year, with adjusted net revenues of $1.2bn, a decrease of 5% on the year, 'as higher debt and equity underwriting activity and continued momentum in securitised products were offset by challenging trading conditions... due to persistently low volumes and volatility'. 'A strong start' to the first quarter of this year, with net revenues up more than 10% on the same quarter last year, 'reflecting strength in equity derivatives due to higher volatility, as well as continued momentum in securitised products'.

International wealth management had a strong 2017, with adjusted pre-tax income up 35% to CHF1.5bn. Asset gathering gained momentum, with net new assets rising 69% to CHF35.9bn for the year. In private banking, adjusted pre-tax income in 2017 was up 36%, to CHF1.1bn on the year with higher net interest income and recurring commissions and fees as well as improved levels of client activity and stable adjusted operating expenses.

Asia Pacific generated adjusted pre-tax income of CHF792m in 2017, with advisory, underwriting and financing net revenues up by 35, with private banking net revenues up 17%, reflecting record transaction-based revenues and recurring commissions and fees. 'In the first six weeks of 2018, estimated net revenues were up by more than 10% in global markets and more than 15% in Apac markets year on year, with significant outperformance in equity derivatives and securitised products.'

Credit Suisse has spent most of 2017 restructuring its global markets, putting equities, credit and a solutions platform, including the bank's derivatives capabilities across products, in one unit. '2017 was a crucial year of delivery in our three-year restructuring plan, after 2016, which was a year of deep and radical reorganization and restructuring,' stated Tidjane Thiam (pictured), chief executive officer at Credit Suisse.

Click in the link to read the full Credit Suisse results report.

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