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(Bloomberg) -- Halfway through Tidjane Thiam’s three-year restructuring plan, Credit Suisse Group AG is looking more like a wealth manager.
Switzerland’s second-largest lender on Friday reported a 78 percent increase in second-quarter profit, to 303 million francs ($312 million), boosted by earnings at its two private banking units. Analysts had expected profit of 294 million francs, according to six estimates compiled by Bloomberg.
“Our focus on the global wealth management opportunity is paying off,” Thiam, 54, said in a statement from Zurich.
Credit Suisse is seeking to boost growth after cutting costs, eliminating thousands of jobs and reducing reliance on volatile debt trading in favor of more stable businesses such as wealth management. UBS Group AG, Switzerland’s largest bank, also on Friday reported a 14 percent increase in second-quarter profit as its wealth management business got a boost from rising U.S. interest rates.
The international wealth management unit, led by Iqbal Khan, reported a 49 percent increase in pretax profit to 365 million francs. At the private banking business in Asia, profit rose 67 percent to 149 million francs from 89 million francs.
Revenue from equities trading slumped 29 percent for a seventh straight quarterly decline, while fixed-income trading rose 4 percent.
--With assistance from Dinesh Nair
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