Credit Suisse reports second quarter profit of 1.6 billion francs
Credit Suisse Group on Thursday posted a net profit of 1.57 billion Swiss francs ($1.41 billion) for the second quarter after a strong performance in its investment unit drove up core revenues.
The results are a 29 percent improvement compared to the 1.22 billion francs net profit the Swiss bank recorded for the same quarter last year.
The results match most analysts’ expectations. Credit Suisse ( CS – news – people ) noted that they included one-time charges, legal costs and tax benefits, without which net profit in the second quarter would have been 2.5 billion francs.
“Our reduced-risk business model is providing the basis for more sustainable, high-quality, lower volatility earnings,” Chief Executive Brady W. Dougan said in a statement.
Investment banking contributed the lion’s share in profits, about 1.66 billion francs before tax.
Profit in private banking dropped 23 percent to 935 million. Wealth Management saw a similar decline to 662 million francs before tax.
Corporate and retail banking saw earnings down 30 percent to 273 million before tax.
Overall, revenues rose 10 percent to 8.6 billion from 7.7 billion.
Assets under management dropped 11 percent to 1.093 billion francs compared to the same quarter last year.
The results are the second consecutive profit for what is now Switzerland’s largest bank by market capitalization. Having posted its worst loss in 153 years in 2008, Credit Suisse returned a net profit of 2 billion Swiss francs in the first quarter.
The Zurich bank also once again trounced cross-town rival UBS ( UBS – news – people ) AG, which warned last month that it expects to post a loss in the second quarter.
Credit Suisse, which remains one of the few global banks to have avoided government bailouts in the financial crisis, has also so far escaped the scrutiny of U.S. justice officials, who are involved in a major tax evasion case against UBS. The bank is accused of helping American clients avoid billions in U.S. taxes by hiding money in secret offshore accounts.
Investigators have repeatedly hinted that they will expand their probe to include other major foreign banks.