Credit Suisse joins banks hit by slump in fixed income revenues
PROFITS slumped at Credit Suisse in the first quarter as the bank revealed weak investment banking results yesterday.
It follows the industry trend of falling bond trading revenues – a sector hit by falling prices and tougher regulations.
Credit Suisse’s pre-tax income fell 34 per cent on the year to SFr859m (£580m).
Net revenues fell eight per cent to SFr6.5bn while operating expenses dropped three per cent to SFr5bn.
Fixed income, currencies and commodities revenues were particularly poor, falling 21 per cent to SFr1.6bn and dragging investment banking profits down 36 per cent to SFr827m.
But its wealth management arm’s profits rose 15 per cent to SFr1bn.
Its Basel III core capital ratio held steady on the quarter at 10 per cent.
The bank’s shares fell 1.47 per cent on the day.