Credit Suisse earnings hit by long-term debt charges
Swiss banking giant Credit Suisse on Thursday said it made 609 million francs (452 million euros, 630 million dollars) in the third quarter, down 74 percent from a year ago.
Switzerland's biggest bank's earnings were hit by fair value charges amounting to 589 million on its long-term debt due to tightening credit spreads and cross currency swap.
It also revealed that Britain's levy on bonuses shaved 43 million francs off its profits, while litigation charges cost it another 73 million francs.
Overall, the quarter was characterized by "challenging conditions with low market volumes and subdued client activity" but all divisions returned profits, said the bank in its earnings statement.
"Continued disciplined investments position Credit Suisse well for market recovery," it added.
The group revealed that its tier 1 ratio -- a measure of the bank's capital adequacy -- was at 16.7 percent at the end of the third quarter.
Brady Dougan, chief executive officer of the bank, added that the bank was "well placed" to meet new banking regulations, which require banks to set aside a significantly higher proportion of capital than previously.
"We anticipated much of the regulatory change, both in terms of capital requirements and the new cross-border regime. This means that we are well placed to meet these new requirements."
© 2010 AFP