Another day, another post about Swiss banks.
Today, Credit Suisse reported a healthy net inflow of funds—some Swfr12.5bn—at its wealth management division during the fourth quarter of last year. This made the unexpectedly large outflow at rival UBS over the same period look even worse than it already did. Credit Suisse’s achievement was even more noteworthy given that it lost Swfr5.6bn in assets declared by customers in response to a tax amnesty by the Italian government.
For a flat 5% fee, the amnesty offered Italians a chance to repatriate undeclared funds with no questions asked. The offer was originally scheduled to expire in December, but after some €100bn in funds were declared—generating a tidy windfall for government coffers—it was extended until the end of April this year.
The effect of the amnesty has weighed on Swiss banks, particularly since markets got wind of the size of repatriated assets via a December statement from the Italian finance ministry. Credit Suisse was the last large Swiss bank to report fourth-quarter results, as well as the most adept at keeping Italian customers’ funds under its control. The bank said that around 66% of the funds declared under the amnesty remained invested with the group, versus 63% at UBS and 60% at Julius Baer.