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Credit Suisse reports 5 percent rise in 1st-quarter profit to US$2.23 billion

Credit Suisse reports 5 percent rise in 1st-quarter profit to US$2.23 billion

Credit Suisse Group said Wednesday that first-quarter net profit rose 5 percent thanks to excellent markets for trading stocks and bonds and more commissions from wealthy clients.
Switzerland's second-largest bank said net profit for the three months was 2.7 billion Swiss francs (US$2.23 billion; euro1.64 billion), from 2.6 billion francs a year earlier.
The company said it is optimistic about long-term growth in its three main businesses _ investment banking, private banking and asset management.
Credit Suisse's overall income rose 6 percent to 11.62 billion francs (US$9.61 billion; euro7.06 billion). The private banking arm also benefited from healthy markets, with commissions and fees up 18 percent.
Credit Suisse gained 15.2 billion francs in fresh private banking assets, mainly from Europe, Asia and the United States. That translates into 7.8 percent growth when annualized, well over the bank's 6 percent target.
Net new assets are a closely watched indicator for Swiss banks because they point to future revenue.
The bank's shares fell 0.2 percent to 95.30 francs (US$78.83; euro57.94) in Zurich.
Outgoing Chief Executive Oswald Gruebel said the results reflected the progress of Credit Suisse's "one-bank reorganization" and boded well for the future.
"I am convinced that under the leadership of Brady Dougan, the new chief executive, Credit Suisse will continue to grow and strengthen its profitability," Gruebel said in a statement.
Gruebel, 63, will hand over to Dougan on Friday. Dougan improved profitability at Credit Suisse's investment bank, partly by a return to risk-taking, along with cost cuts.
"This is certainly a good result, perhaps not the blowout that some market participants expected, but healthy nevertheless," said Andreas Venditti, Zurich-based analyst for Zuercher Kantonalbank.
Keefe, Bruyette & Woods said the results showed Credit Suisse is keeping a lid on costs.
The earnings came after a year of Credit Suisse's "one-bank" reorganization of the business under private banking, investment banking and asset management to boost revenue and cut costs by getting traditionally independent units to work more closely together.


Updated : 2021-05-09 00:05 GMT+08:00