Credit Suisse turns lower profit for 2010

Switzerland’s second-largest bank Credit Suisse has reported a net profit of SFr5.1 billion ($5.31 billion) in 2010 – around a quarter less than the previous year.

The 2009 figure of SFr6.7 billion was the third best result in the bank’s history. But 2010 was marked by uncertainties on the financial markets.

Although the investment banking sector was able to recover a bit in the fourth quarter, its pre-tax profit for 2010 was SFr3.5 billion, around 48 per cent less than in 2009. Private banking saw a six per cent drop to SFr3.4 billion.

“Credit Suisse has continued to execute on its client-focused, capital-efficient strategy with an industry leading return on equity of over 14 per cent,” said CEO Brady Dougan in a statement on Thursday.

“This has served us well through 2010, a year of transition toward the new regulatory environment. Our integrated business model with its balanced portfolio of income streams has proven resilient and leaves us well-capitalized with evidence of continued market share momentum across businesses.”

Credit Suisse attracted SFr9.6 billion of net new client money in the fourth quarter to its wealth management arm, benefiting from clients leaving UBS, which had to be bailed out by the Swiss government in 2008.

However, rival UBS seems to be recovering and posted a net profit for 2010 of SFr7.2 billion on Tuesday compared with a loss of $2.7 billion in 2009. It is the first time the bank has been in the black since 2006.