Bloomberg reports that Credit Suisse posted its 5th straight profitable quarterly results Thursday. Net income came in at $1.92bn.
Pretax profit over at the investment bank, however, fell 26% from the same period 12 months ago to $1.67bn, while private banking profits came in 10% off. After posting a loss of $457m in the first-quarter last year, the asset management unit came in with a $155m profit.
Brady W. Dougan, Chief Executive Officer, said: 'In the first quarter of 2010 we provided further evidence that our client-focused, capital-efficient strategy and reduced-risk business model can generate stable, high-quality earnings. We are pleased that we were able to improve our operating performance compared to the strong first quarter of 2009 and achieve an industry-leading return on equity and capital position. We also generated strong client flows and maintained our track record of attracting strong net new assets.
Market conditions in the second quarter to date have remained similar to those in the first quarter and we are confident that our business model will enable us to continue to generate high-quality results in good as well as in more challenging market conditions'.
Commenting on Private Banking, he said: 'We believe that we will further improve our profitability in Private Banking when markets and the demand for comprehensive solutions recover. We also expect to benefit from a higher interest rate environment. We are positioned to perform well in the changing regulatory environment in cross-border banking as we have been building a multi-shore business with a robust compliance framework for many years. We will continue to invest in strengthening and expanding our international presence'.
Commenting on Investment Banking, he said: 'Investment Banking is thriving as a result of the action we took to reposition the business in the changed financial services landscape. We believe that we have a significant opportunity to extend our market share gains across our Investment Banking businesses as we build our distribution platform and expand our client base. We are significantly increasing our distribution capabilities in our securities businesses by growing our flow sales headcount across key businesses, including our rates and foreign exchange, emerging markets and credit products businesses'.
Commenting on Asset Management, he said: 'We are focusing on core fee-generating businesses in which we believe we can excel - asset allocation, the Swiss businesses and alternative investments. Asset Management is expected to benefit further from the strategic measures undertaken last year and to be a significant contributor of value to the bank and to our clients in 2010 and beyond'.