Credit Suisse joined the growing list of investment banks to beat expectations in its second-quarter results on the back of strong bond markets and stock trading. It set aside Swf2.75bn (£1.55bn) for pay and bonuses.
Credit Suisse joined the growing list of investment banks to beat expectations in its second-quarter results on the back of strong bond markets and stock trading. It set aside Swf2.75bn (£1.55bn) for pay and bonuses.
Profits rose 29pc to Swf1.6bn as revenue from trading stocks and bonds doubled. Earnings in the securities division – the core investment bank – rose fivefold in the quarter, from Swf304m to Swf1.66bn, while profit declined less than analysts predicted in wealth management, which attracted Swf8.5bn of new money compared with Swf15.4bn last year.
Brady Dougan, chief executive, has cut 4,900 jobs since December, closed unprofitable businesses at the investment bank and reduced risk-taking to return the bank to profit this year. He believes changes in the banking landscape will endure. “Our view seems to be in contrast to some who believe the industry will quickly go back to the old days,” he said. “We don’t agree with this.
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