Credit Suisse moves into profit

24 July 2008

Credit Suisse has become the latest financial firm to release better-than-expected second quarter results.

The Swiss bank declared a $1.18 billion profit for the three-month period, a drop of 62 per cent.

Nevertheless, the net earnings - equivalent to 1.12 Swiss francs per share - exceed analysts' expectations, and follow similarly better-than-expected quarterly results from rival firms JPMorgan and Citigroup.

A new, risk-averse attitude at board level was also signalled yesterday by Credit Suisse's chief executive Brady Dougan, who said that he has cut leveraged loans and property assets held by the firm - the value of which has been hit hard by the credit crunch - by 68 per cent over the past nine months.

"We anticipate that the current challenging market conditions will persist over the near to medium term and we will continue to manage our business conservatively," Mr Dougan added.

"At a time when the industry is undergoing fundamental change, our strength in the right mix of businesses provides us with excellent prospects to grow market share."

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