Credit Suisse reports rise in profits

25 July 2013

Credit Suisse has reported a net income of 1.045 billion Swiss francs ($1.1 billion) for the second quarter of 2013.

This represents a 40 per cent net profit increase from the same period a year ago and means the institution has largely met its forecasts

Strong trading in stocks and bonds saw its investment banking business prosper, although trading revenues took a hit, as debt markets became anxious of the prospect of an end to monetary stimulus from the US Federal Reserve.

Pre-tax profits at its private banking business fell by seven per cent from a year earlier, which was partly due to the arm paying 100 million Swiss francs in withheld taxes to the UK.

The institution has doubled its pre-tax profits compared with a year earlier, however, 2012 was marred by the effects of the eurozone crisis.

Rough markets undermined client activity in June and July, but the firm is optimistic for the future.

Chief executive Brady Dougan said in the long-term "the transition to higher rates will benefit our business".

By Claire Archer

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