Credit Suisse posted third quarter net profits of $1.5bn, but only after realising net gains of $955m from disposals like Churchill Insurance and the US and Italian operations of Winterthur. Reuters reports that the results show a 13% drop in operating income from the second quarter, as group net trading income plunged by 95%. This is put down to the shine coming off of the bond market in the period.
Group Chief Financial Officer Phil Ryan told Reuters that 'Cost control continues to be a very high priority across the group. We're done with the announced big headcount programmes, but there is still more cost reduction in all units to be done'.
Over at CSFB, net profit fell 21% from the second quarter to $224m as bond income was off. Ryan added: 'The easy money in fixed income is probably over, at least for a while. We do see investment banking continuing to do modestly well. We do see a mildly better environment'. Private banking was singled out as having put in a strong performance.
Credit Suisse shares rose 19% during the third quarter alone and are 59% up on the year, second only to Siemens in the Dow Jones Stoxx 50 Index.