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Credit Suisse sees recovery

CREDIT Suisse added its name to the series of banks reporting improved results yesterday, as it unveiled a second-quarter profit of Sfr1.57bn (&pound;890m) on the back of a barnstorming period for investment banking.<br /><br />The Swiss bank reported a second successive profitable quarter, up 29 per cent from the same quarter in 2008, a year in which the bank suffered a 12-month loss of Sfr8.2bn.<br /><br />Profit beat a consensus forecast of Sfr1.4bn, but was down 22 per cent on the first quarter, during which the bank booked earnings of Sfr2bn.<br /><br />Pre-tax income in investment banking was Sfr1.7bn and would have been Sfr2.4bn were it not for improving credit spreads on the bank&rsquo;s own debt and charges relating to a settlement last month with Huntsman, over claims the bank sabotaged a $6.5bn buyout of the US-based chemicals maker.<br /><br />Private banking also reported a strong performance, with pre-tax income of Sfr0.9bn and net new assets of Sfr10.7bn.<br /><br />Asset management returned to profitability, reporting pre-tax income of Sfr55m, while the bank's tier one capital ratio, a key measure of financial strength, reached 15.5 per cent, up from 14.1 per cent at the end of the previous quarter.<br /><br />Chief executive Brady Dougan said: &ldquo;We believe that we are well positioned to benefit from our very strong capital position and our differentiated business model in the evolving industry landscape.&rdquo;<br /><br />He said he expected the global economic situation to remain &ldquo;challenging&rdquo;, but added that &ldquo;if markets continue to improve we expect to see further momentum across our businesses&rdquo;.