Credit Suisse posted better-than-expected third quarter results on Thursday, although there were one-off tax gains which somewhat flattered the position. Net earnings came in at $1.2bn. The bank said that full-year figures will remain in line with projections and that profit growth in the coming quarters will be acheived from managing costs and increasing market share in its business units.
Over at CSFB, the rumours of a big quarterly loss proved to be unfounded. But the firm continues to struggle, posting a $270m profit, down 25% on what was a weak second quarter performance, on lower equity trading and underwriting revenues.
Group Chief Financial Officer Renato Fassbind told journalists that CSFB was 'absolutely' part of the group and that 'investment banking is a core part of Credit Suisse'. The results of the CSFB strategic review are due to be made public on December 7th, but insiders say that group CEO Oswald Gruebel may well decide to more closely integrate CSFB with the rest of the group in a move to save on costs.
The smart money has it that CSFB will pull away from certain markets and product areas as it will stop trying to be all things to all men. Jobs losses are likely as a result. Rumours also abound that the once-hallowed 'First Boston' name will be dropped by the investment bank.