Credit Suisse Group AG (CSGN.EB) plans to complete its group restructuring in 2018, it said Thursday as it raised its 2018 profit target for its wealth-management and connected business in Asia-Pacific, and announced new guidance for 2019 and for 2020.
Credit Suisse expects return on tangible equity of between 10% and 11% in 2019, and of 11% to 12% in 2020, it said.
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The Swiss banking group anticipates that by the end of 2017, it will meet its 2018 target of 700 million Swiss francs ($710.9 million) in adjusted pretax profit at its wealth-management and connected business in the APAC region. It also raised the 2018 target to CHF850 million.
Credit Suisse confirmed its 2018 targets for its Switzerland-based operations, its international wealth-management unit and other divisions.
The company said it expects to more than meet its 2017 goal of having costs of less than CHF18.5 billion. It now expects a total cost base of about CHF18 billion and confirmed its 2018 target of less than CHF17 billion in costs.
"We also aim to increase returns to shareholders and plan to distribute 50% of net income earned to them primarily through share buybacks or special dividends," the bank said.
Credit Suisse has in recent years undertaken a broad strategic shift, putting greater emphasis on its wealth-management operations and streamlining its investment banking unit.
Two years into the overhaul being carried out under Chief Executive Tidjane Thiam, who took the reins in 2015, Credit Suisse earlier this month reported a sharp rise in third-quarter profit on strong growth in wealth-management. Assets under management hit a record high last quarter of CHF751 billion.
Credit Suisse said that pretax income from its international wealth-management unit grew 59% last quarter from the previous year to CHF382 million, driven by strong growth in Asia. It recorded net new assets of CHF10.4 billion, up 8% on year.
"Our focus on wealth-management is paying off as the franchise has delivered strong broad-based and profitable growth," Mr. Thiam said.
Write to Pietro Lombardi at email@example.com
(END) Dow Jones Newswires
November 30, 2017 02:21 ET (07:21 GMT)