Credit Suisse shows another big rise in net profits

Credit Suisse logo. Keystone

The Credit Suisse Group said on Wednesday that third quarter net profits increased by 66 per cent to SFr1.6 billion ($900 million).

However, the results were lower than in the first and second quarters as the cost of the group’s takeover of US-based broker, Donaldson, Lufkin and Jenrette (DLJ) cut into profits.

Credit Suisse Group recently bought DLJ in a share and cash deal valued at SFr21.5 billion ($12.1 billion). It repeated its warning on Wednesday that the acquisition would hit full-year financial results due to restructuring charges.

Managed assets rose to SFr1.269 trillion at the end of September from SFr1.227 at the end of the first half.

Credit Suisse Group includes Switzerland’s second biggest bank, Credit Suisse, and the insurance company, Winterthur.

Shares in the group have suffered recently after concerns that its investment operation was too exposed in the technology, media and telecommunications sectors.

In its statement, Credit Suisse Group attempted to calm these fears.

“Given current market concerns over the industry’s high-yield and telecom exposure, Credit Suisse Group states that it is not overweight in either of these sectors and has not experienced any notable difficulties.”

swissinfo with agencies