Credit Suisse back on track as second quarter profit soars
Credit Suisse today said it is on track to meet its full-year targets after posting its strongest quarterly results in four years.
The bank reported pre-tax profit of 1.3bn Swiss francs (£1.1bn) in the second quarter, up 24 per cent on the previous year. Net profit attributed to shareholders soared 45 per cent to 937m francs.
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Credit Suisse said the figures marked a recovery from a difficult first quarter, when pre-tax profit ticked up just one per cent amid tough trading for its investment banking division.
Return on tangible equity, which measures profit as a percentage of shareholders’ funds minus intangible assets such as goodwill, hit 10 per cent for the first time since the fourth quarter 2015.
Shares in Credit Suisse rose almost five per cent following the announcement.
“We have been explicit that we wanted to be a leading wealth manager with strong investment banking capabilities, and we have continued to make progress on both of these fronts,” said chief executive Tidjane Thiam.
“These results, delivered in a challenging environment, indicate that our bank has emerged from three years of restructuring with a strong franchise and an efficient platform, allowing us to support our clients and generate growing returns for our shareholders.”
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Credit Suisse, which is Switzerland’s second-largest bank, said it had experienced “healthy” levels of client engagement so far in the third quarter.
But it warned market conditions would dictate whether or not this translated into activity.
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