Credit Suisse Profit More Than Doubles as Trading Rises 

Credit Suisse Group AG (CSGN), Switzerland’s second-biggest bank, reported an increase in third-quarter profit driven by a surge in revenue at the investment bank, while earnings in other businesses fell.

The group’s net income jumped to 1.03 billion Swiss francs ($1.08 billion) from 454 million francs a year ago, the Zurich-based bank said in a statement today.

Chief Executive Officer Brady Dougan, 55, said earnings at the investment bank reflected “robust client activity” across businesses, while October has been “mixed.”

“The investment bank did well,” said Dirk Becker, a Frankfurt-based analyst with Kepler Cheuvreux who rates the stock hold. “Trends in wealth management continue to weaken. The gross margin and net new assets were the biggest disappointments there.”

Profit at the investment bank more than doubled to 516 million francs in the quarter as revenue from fixed-income trading rose 73 percent to 1.44 billion francs, helped by securitized products and emerging-markets businesses. Equities revenue was little changed at 1.07 billion francs.

Credit Suisse on Oct. 17 named Jim Amine and Tim O’Hara co-heads of the investment banking division, joining Gael de Boissard in that role. Eric Varvel, who helped oversee the unit for five years, stepped down from the executive board and assumed the role of chairman for the Asia-Pacific and Middle East regions.

Credit Suisse plans to make about 70 billion francs in business asset reductions, of which about 26 billion francs relate to the cuts in the macro business, which includes foreign exchange and rates businesses, that have already been announced, Chief Financial Officer David Mathers told journalists on a conference call today.

 

Source: bloomberg- Credit Suisse Profit More Than Doubles as Trading Rises

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