C Suisse posts strong results on improved investment banking performance

Credit Suisse Canary Wharf

Credit Suisse posted a 33% jump in second-quarter profit as earnings at the investment bank more than doubled.

Bloomberg News reports that net income climbed to $1.12bn from $840m a year earlier, the Zurich-based bank said Thursday.

Credit Suisse carried out more than 60% of $4.7bn in cost cuts planned by the end of 2015 by eliminating jobs and reorganizing businesses at the investment bank.

Group CEO Brady Dougan said last month the bulk of future savings will come from private banking and wealth management as well as streamlining shared services.

'Our business model is performing well and we continue to make progress in reducing our cost base and balance sheet,' said Dougan. 'Investment Banking delivered a strong return on Basel III allocated capital of 12% for the second quarter and 18% for the first six months of 2013, double the 9% reported in the first half of 2012.

'This demonstrates our successful transition to Basel III, the effectiveness of our diversified business model and our significantly improved capital and operating efficiency.'

On the bank's overall performance, Dougan concluded: 'We have significantly advanced the transformation of our business model, consistent with the Swiss regulatory framework.'

Credit Suisse have largely benefited from good stocks and bonds trading. Their own shares have risen 13% in the last month.

Credit Suisse Profit Rises 33% on Investment Bank

Credit Suisse Q2 press release

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