VERHAUL of its investment bank has helped Credit Suisse beat quarterly earnings forecasts and offset a slide in profits from its private banking arm.
Credit Suisse, which set out plans to hive off its international investment bank in November, yesterday said its group net profit rose to SFr1.3bn (£1.1bn) in the quarter, ahead of forecasts and up from SFr44m a year earlier after a debt charge.
Spending on its investment bank fell 13 per cent as some pay was cut or deferred, and revenues stabilised at SFr3.95bn. Overall, the bank said it made SFr2.5bn in cost savings during the period.
Credit Suisse’s private bank – the fifth-largest in the world by assets – saw its profits fall seven per cent to SFr881m as it suffered from low interest rates, uncertain markets and a strong Swiss franc.
“With an underlying return on equity of 16 per cent for the first quarter of 2013, we continue to show strong client franchise momentum and generate high returns on a substantially lower risk and cost base,” said chief exec Brady Dougan.
Shares in Credit Suisse closed up 1.5 per cent at SFr26.84, slightly outperforming the Swiss market.