Shares in Credit Suisse jumped today as the Swiss bank reported a big jump in profits, buoying its leadership as it tries to fight off attempts to break up the firm.
The group today reported third-quarter income attributable to shareholders of SFr244m (£187m), up from SFr41m during the equivalent period last year.
Pre-tax income rose 80 per cent year-on-year to SFr400m despite a two per cent fall in revenues. The bank delivered cost cutting of SFr400m in the third quarter, and said it was “confident” it will end the year below target on costs.
Read more: Credit Suisse unveils £3bn rights offering
Much of the profit growth was delivered in the wealth management division, which saw net new assets rise by SFr10.4bn during the period. Credit Suisse chief executive Tidjane Thiam said: “In our wealth management-related businesses, we have achieved a step change in profitability.”
Credit Suisse is currently facing a campaign from a small but influential Swiss hedge fund, RBR Capital Advisors, which wants to split off the investment bank and asset management arm from the wealth management and banking group.
Thiam said RBR had “behaved very correctly” in its approach, and added he will meet its head Rudolf Bohli next week in an interview with the CNBC channel today.
However, he added the bank has considered the alternatives already, and stuck by his own turnaround plan.
“We genuinely believe that for this company this is the best strategy,” Thiam said. “If it wasn’t delivering, maybe, but this is really delivering.”
The third consecutive quarter of profits came after two years of losses in the billions of francs.
Shares in Credit Suisse rose by 4.48 per cent on the Six Swiss Exchange after the results were released.