Credit Suisse’s wealth management division attracted net new assets of CHF 9 billion ($7.8 billion) during the first quarter of 2009. It also posted a pre-tax income of CHF 646 million ($557 million), down 25% from a year earlier.

Overall, the firm returned to profit and exceeded analysts’ expectations, announcing net income of CHF 2 billion ($1.7 billion) for the quarter after posting a loss of CHF 2.1 billion last year ($1.8 billion). The Investment Banking division, which was responsible for much of last year’s losses, also posted pre-tax income of CHF 2.4 billion ($2.1 billion).

But despite the new assets, it wasn’t all good news for the wealth management division. It also posted lower net revenues of CHF1.9 billion ($1.6 billion). That is down 17% from a year earlier. And, income before taxes was CHF646 million in the first quarter of 2009, representing a 25% drop from the prior-year period. The firm blamed the lower revenues on the decline in assets under management in the current market and cautious clients seeking safe investments, as they shift from securities accounts to cash.

The firm also reduced its number of “relationship managers” also known as financial advisors by 120, or 3% of its total advisor headcount, “to create space for talent upgrades.” The firm added that it was continuing to hire senior advisors and expand globally.

Still, Credit Suisse reported inflows of $10.6 billion in client assets in the fourth quarter of 2008. Compare that to the firm’s larger Swiss rival, UBS, which saw net outflows of client assets of $58.2 billion for the same period.

But, Credit Suisse has not faced the same issues in its cross-border banking business as UBS, which was forced to reveal client names and pay a $780 million fine in February for helping clients to avoid US taxes through the use of offshore accounts. In its results presentation, Credit Suisse said it had developed an “industry leading stringent framework” which allowed it to continue to offer cross-border banking services.

Brady Dougan, chief executive of Credit Suisse, says that the wealth management business has shown resilience during the market downturn. “We are reaping the rewards from the steps we have taken over recent years to expand our international footprint and build a more efficient platform,” he said in a statement. “We will continue to judiciously invest in growth, both globally and in our Swiss business.”