CS beats estimates but is still way down

Switzerland's second-largest bank, Credit Suisse, has reported a second-quarter net profit of SFr1.2 billion ($1.16 billion), 62 per cent less than one year ago.

The bank, which reported a SFr2.1 billion loss in the first quarter, its first quarterly loss in five years, said that its investment bank, private bank and asset management business had all posted profits.

Credit Suisse had been expected to post a net profit of SFr526 million in the second quarter, according to a Reuters poll.

The Credit Suisse Group has lost billions in the United States subprime mortgage market and was forced to admit billions more from a trading scandal.

“At a time when many competitors are questioning their business models, our strategic direction is clear and consistent,” commented the group’s chief financial officer, Renato Fassbind.

He added that the credit crunch was “definitely still here” and that volatility would continue for the time being.

“Given our strength, this period of change in our industry will provide Credit Suisse with unprecedented opportunities,” Fassbind added.

The group, which has emerged less damaged from the turmoil than other big names – notably its rival UBS – said net new money in its wealth management unit rose to SFr15.5 billion, up from SFr13.3 billion a year ago.

UBS, Switzerland’s largest bank, is due to report its second-quarter figures on August 12.