Wind back in Credit Suisse sails
The Credit Suisse Group has reported a better-than-expected rise in third-quarter figures. Net profit jumped 42 per cent to SFr1.9 billion ($1.48 billion).
Announcing its results on Wednesday, Switzerland’s second-largest bank said business for both its investment and its private bank sectors had boomed.
Credit Suisse was able to take advantage of continued strong growth and confidence in global financial markets, and was able to beat analysts’ forecasts by about SFr400 million.
The surprisingly good result follows a drop in net profits in the second quarter to SFr919 million.
“Our group benefited from increased levels of client activity and the active market environment,” said Credit Suisse CEO, Oswald Grübel, commenting on the third quarter results.
Like its larger rival, UBS, Credit Suisse has large private banks and substantial investment banking operations, with retail banking limited to Switzerland.
New assets
The private banking segment reported a net income increase of 42 per cent to SFr728 million, and net new assets of SFr14.3 billion, benefiting from inflows from Asia and Europe.
The Institutional Securities sector grew by 110 per cent to SFr612 million.
The bank’s Wealth and Asset Management division earned SFr101 million – a jump of 237 per cent over the same period last year.
However, the insurance segments reported decreases compared with the third quarter of 2004.
The Life and Pensions segment declined by SFr68 million and the non-life division was down four per cent.
Shares in Credit Suisse have gained about 20 per cent this year. Analysts say they have outperformed those of UBS because investors see greater potential in Credit Suisse, which is still in the midst of a restructuring process.
swissinfo with agencies
Credit Suisse third quarter net profit, SFr1.9 billion (+42%)
Net new money flows into core private banking business rose to SFr14.3 billion from SFr3.8 billion a year ago.
Credit Suisse now has total assets under management of SFr1.405 trillion.
The Credit Suisse Group is active in 50 countries and employs more than 60,000 people – 26,000 in Switzerland.
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