Cost cutting gives Credit Suisse a Q2 boost

AP News
Posted: Jul 25, 2013 4:11 AM

GENEVA (AP) — Credit Suisse posted a 33 percent rise in second-quarter profits from a year ago, driven by solid returns from its investment banking division as well as cost-cutting.

Switzerland's second-biggest bank said Thursday it made a net profit of 1.045 billion Swiss francs ($1.11 billion) in the second-quarter, up from 788 million francs in the comparable period of 2012.

That was based on a rise in net revenue to 7 billion francs from 6.3 billion francs, according to a second-quarter statement from the Zurich-based bank, second in size only to its crosstown rival, UBS AG, the nation's biggest.

Chief Executive Brady Dougan said the bank's "business model is performing well" and that it continues to make progress in reducing its cost base and balance sheet.

The bank said its private banking arm for wealthy clients had 7.6 billion francs in net new assets, with strong inflows in emerging markets, though profits fell. Its investment bank had pretax income of 754 million francs, more than double from a year ago.

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The bank said it was on track to cut costs by 4.4 billion francs by the end of 2015 and had trimmed staff to 46,300 in the second quarter, down almost 4 percent from 48,200 a year earlier.