Credit Suisse reports first-half profit up 11 percent

(AP) -- Credit Suisse Group AG said Wednesday it boosted its first-half net profit by 11 percent from last year to SFr2.665 billion ($1.78 billion).

This content was published on September 8, 1999 - 10:32

(AP) -- Credit Suisse Group AG said Wednesday it boosted its first-half net profit by 11 percent from last year to SFr2.665 billion ($1.78 billion).

Last year's first-half figure was SFr2.4 billion ($1.6 billion). Net operating profit rose by 10 percent to SFr13.8 billion ($9.2 billion), Credit Suisse said.

But the banking giant said its investment bank, Credit Suisse First Boston, reported a 4 percent decline in first-half net profit to SFr1.014 billion ($676 million), as it sought to reduce risks after its exposure to Russian bonds last year.

The banking giant said its group strategy aims to increase the share of net profit coming from the "less volatile" businesses of "asset accumulation and asset management," including insurance.

The portion of net group profit arising from those business rose to 62 percent in the first half from 58 percent a year earlier.

The group said its operating expenses rose by 12 percent in the first half to SFr.1 billion ($6.07 billion), reflecting acquisitions, efforts to expand businesses and the "shift to lower risk but more personnel-intensive businesses in investment banking."

Credit Suisse said its second-half performance will fall short of its first-half results, but predicted "good results" for the whole year.

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