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Investment banking success drives Credit Suisse's profits

Credit Suisse became the latest major bank to post improved financial results when it published its third quarter results on Thursday.

The Swiss bank reported net income of $2.38 billion for the three-month period ending on September 30th 2009, compared to a loss of $1.25 billion in the third quarter of 2008.

Its improved results were largely thanks to the performance of its investment banking division, which generated pre-tax income of $1.68 billion.

Credit Suisse's chief executive officer Brady Dougan said the figures from investment banking operations demonstrated the success of the bank's differentiated strategy.

"Our decision a year ago to accelerate the implementation of a client-focused, capital-efficient strategy in investment banking in the changed environment is yielding strong benefits," he added.

The news came after JPMorgan Chase and Morgan Stanley both reported strong third-quarter results.

There was further evidence of the global banking sector's recovery in Germany, where two major banks announced plans to repay the state aid they received during the financial crisis.

BayernLB has followed Commerzbank in agreeing to return outstanding state guarantees, reports Reuters.

Written by Claire Archer