Bloomberg

(Bloomberg) -- Credit Suisse Group AG unexpectedly returned to profit during the second quarter, with all operating units contributing to its first positive result since Chief Executive Officer Tidjane Thiam set out to reinvent the Swiss bank.

Net income fell 84 percent to 170 million Swiss francs in the three months through June, compared with 1.05 billion francs ($1.06 billion) a year earlier. Analysts were expecting a loss of 178 million francs, according to the average of five estimates compiled by Bloomberg.

Since taking over a year ago, Thiam has struggled to restore profitability and reverse a drop in shares that have wiped out 47 percent of the bank’s market value this year. The bank recorded a loss in the two previous quarters.

Credit Suisse is scaling back its investment bank to free up capital for expanding the bank’s wealth management business. Thiam accelerated the strategy in March, after further writedowns on high-risk securities.

To contact the reporter on this story: Jeffrey Vögeli in Zurich at jvogeli@bloomberg.net. To contact the editors responsible for this story: Simone Meier at smeier@bloomberg.net, Cindy Roberts

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