Profits surge at Credit Suisse
Swiss bank Credit Suisse has reported a second-quarter net profit of SFr3.2 billion ($2.65 billion) – up 48 per cent compared with the same period in 2006.
The results, above analysts’ expectations, were boosted by record income from securities’ trading and higher fees from managing wealthy clients’ assets.
Switzerland’s second-largest bank said on Thursday pre-tax income from its investment banking unit rose 94 per cent to SFr2.5 billion in the second quarter compared with SFr1.29 billion for the same period a year earlier.
The net profit results were well ahead of analysts’ expectations of SFr2.3 billion.
The bank said it generated SFr13.3 billion in new assets for its wealth management business, while inflows into asset management were SFr20.4 billion in the second quarter.
The bank said it managed a total of SFr1.63 trillion by June 30, a five per cent increase compared with March 31.
New assets are a closely watched indicator for Swiss banks because they point to future revenue.
Glittering start
“I am particularly pleased with our performance given the fact that we had more challenging conditions in some markets, which we expect to continue,” said new CEO Brady Dougan in a statement.
“I am very optimistic about the long-term growth prospects for Credit Suisse, and I believe that our client-focused, integrated business model and disciplined risk-taking will enable us to deliver superior value to shareholders through market cycles.”
The results are a first glimpse of how Dougan, who has barely made any public pronouncements since taking over at Credit Suisse’s helm from Oswald Gruebel in May, might run the bank in the future.
Dougan previously ran the bank’s investment banking division, which according to analysts generated nearly 60 per cent of the group’s pre-tax profit in the first half.
European banks have been among those suffering owing to the current crisis in the US sub-prime mortgage market.
Investors appeared to welcome the results, with Credit Suisse shares rising 2.4 per cent to SFr81.90 in Zurich early on Thursday morning.
Analysts at Zurich Cantonal Bank predicted an SFr8 billion share buyback programme would be completed in 2008, rather than 2010 as planned.
swissinfo with agencies
Results for first half of 2007
Net revenues: SFr24.657 billion
Total operating expenses: SFr14.761 billion
Net income: SFr5.918 billion
Basic earnings per share: SFr5.56
Number of employees at end of June: 45,600
Total assets under management:SFr1.629 trillion
2006 results
Net revenues: SFr38.603 billion (+ 27% compared with 2005)
Total operating expenses: SFr24.414 billion (+5%)
Net income: SFr11.327 billion (+94%)
In compliance with the JTI standards
More: SWI swissinfo.ch certified by the Journalism Trust Initiative
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.