Credit Suisse results shine over rival UBS
Swiss bank Credit Suisse has reported a third-quarter net profit of SFr1.892 billion ($1.52 billion) - a performance well ahead of forecasts.
This contrasts with net profit from its rival UBS, which earlier this week announced a net profit drop of 21 per cent from a year ago to SFr2.2 billion, significantly less than expected.
Credit Suisse said on Thursday its profit had fallen by only one per cent compared with the same period last year and had been lifted by strong fixed income trading.
Analysts had on average predicted a net profit of SFr1.681 billion.
The bank, Switzerland’s second largest, also reported a net inflow of SFr10.9 billion into its wealth management business, lower than expected, and inflows of SFr21.2 billion into its asset management division.
Credit Suisse said income the first nine months was up 40 per cent over the same period last year.
“Our wealth management was seasonally lower, while our investment banking business reported good results in fixed income but was impacted by lower equity trading revenues,” said CEO Oswald Grubel in a statement.
The bank added that its pipeline of business was strong as the end of the year approached. Credit Suisse, which has announced the sale of its Winterthur insurance unit to French firm AXA, said it was keeping to a net group profit target of SFr8.2 billion for 2007.
Slide
On Tuesday UBS – the country’s largest bank – said its net profit for the quarter had fallen because lacklustre capital markets had hurt its investment banking business.
Net profit fell to SFr2.2 billion compared with SFr2.77 a year ago. Average analysts’ estimates had predicted SFr2.64 billion.
“We felt the effects of the May and June market correction in the first part of this quarter as sentiment did not really improve until September – which is why we were not able to match the very strong performance in the first half,” Clive Standish, UBS’s chief financial officer, commented in a statement.
In August the bank announced its half-year profit had jumped by 40 per cent over the same period last year to SFr6.65 billion.
However, UBS insisted it was still on track for a record full-year result, both financially and in terms of strategic progress.
swissinfo with agencies
Credit Suisse
Third-quarter net profit: SFr1.892 billion (-1% compared with same period last year).
Group net income for first nine months: SFr6.654 billion.
Basic earnings per share over nine months: SFr6.
UBS
Third-quarter net profit: SFr2.2 billion (-21%)
Analysts had predicted an average of SFr2.64 billion.
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