Credit Suisse says earnings ‘resilient’ in volatile market

Credit Suisse says earnings ‘resilient’ in volatile market

Zurich: Swiss bank Credit Suisse said Thursday its second quarter net profit reached 1.6 billion francs (€1.19 billion, $1.52 billion) in a period characterized by volatility in the markets stemming from Europe’s sovereign debt crisis.

Compared to the same period last year, the banking giant’s earnings were up a slight 1%, but compared to the first quarter this year, they were down 22%.

“This was a resilient performance during a difficult second quarter for the banking sector," said Brady Dougan, the group’s chief executive officer.

“We remain confident that our strategy is appropriate and resilient in the face of an uncertain and challenging economic and market environment."

The tough market conditions were felt particularly by its investment bank division, which recorded a 32% drop in net revenues to 4.099 billion francs during the period compared to the second quarter last year.

The plunge was due mainly to weak fixed income sales and trading revenues, said the bank.

The Zurich-based institution continued to attract new deposits, with net new assets reaching 14.5 billion francs during the period.

However, this was at a much slower pace than during the first quarter, when the bank recorded net new assets of 26 billion francs.