Credit Suisse reports 31 per cent income drop

1 November 2007

Credit Suisse reported a 31 per cent drop in net third-quarter income because of the continued effects of the sub-prime crisis.

Third-quarter income dropped $1,893 million in write downs and the bank cited the continued problems of the financial markets as a cause for the losses.

This quarter last year saw the investment banking division make $652 million but in 2007 it returned just $5.1 million operating earnings.

Residential mortgage-backed securities and structured products suffered $0.8 billion in write downs.

Income in private banking saw a 26 per cent increase in profits to $1.1 billion while the asset management division saw earnings drop by 85 per cent to $38.7 million.

Speaking to the Guardian, Brady Dougan, chief executive, said: "We are seeing encouraging signs that activity in credit markets is increasing although it is too early to predict when all of the affected markets will return to more normal levels."

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