Credit Suisse returns to profit in Q2
24 July 2008
ZURICH -Credit Suisse Group returned to profit from subprime losses in the second quarter, posting a net income Thursday of CHF 1.22 billion.
Credit Suisse’s second-quarter result was 33 percent lower than the net income of 3.2 billion francs in the same period in 2007.
Switzerland’s second largest bank, which has weathered the U.S. subprime mortgage crisis better than cross-town rival UBS AG, had gone into the red for the first quarter, posting a net loss of CHF 2.1 billion.
The bank said it had combined net writedowns of CHF 22 million in the leveraged finance and structured products businesses, which it said was so low as to be "immaterial".
In the first quarter, Credit Suisse had net writedowns of CHF 5.3 billion for big buyout loans and mortgage securities.
"We are pleased with our second-quarter results, which reflect the resilience and earnings power of our integrated business model and our continued focus on risk and cost management," said chief executive Brady W. Dougan.
He said the bank had further reduced its risk positions.
"Our conservative funding structure and our position as one of the world’s best capitalised banks remain competitive advantages," Dougan said in a company statement.
[AP / Expatica]