The private banking arm of Credit Suisse, Switzerland’s second-biggest bank, logged pre-tax income in the second quarter of 2012 of SFr775 million (around $792.3 million), a year-on-year decline of 7 per cent but a rise of 28 per cent on the previous quarter.

Net revenues declined 2 per cent year-on-year to SFr1.704 billion; total operating expenses at the private bank fell 2 per cent to SFr1.89 billion, the Zurich-listed bank said today.

The private bank’s pre-tax income margin improved to 29 per cent. The private bank logged net new assets of SFr3.4 billion in the quarter.

Private banking comprises the global Wealth Management Clients business and the Swiss Corporate & Institutional Clients business.

Transaction-based revenues were hit by ongoing low client activity, which was more than offset by gains from the integration of Clariden Leu, of which SFr41 million related to the sale of a non-core business.

For the banking group as a whole, reported pre-tax income rose to SFr1.11 billion in the second quarter of this year from SFr1.086 billion a year ago; underlying pre-tax income rose to SFr1.148 billion from SFr1.124 billion.

At the end of June, Credit Suisse had a Core Tier 1 ratio of 16.5 per cent.

Credit Suisse, which has been on a cost-cutting programme, said it is increasing its end-2013 cost-savings target to SFr3.0 billion from SFr2.0 billion, of which SFr450 million are to take place in private banking.