Credit Suisse posts 2 pct rise in Q1 profit

Swiss banking major Credit Suisse reported a 2 pct rise in profit to 2.05 billion Swiss francs.

Swiss banking major Credit Suisse reported a 2 per cent rise in profit to 2.05 billion Swiss francs in the first quarter of 2010,supported by lower costs and the strong performance of its fixed income trading business.

Net revenue,however,fell six per cent to 8.96 billion Swiss francs in the first quarter ended March 31,Credit Suisse said in a statement.

“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,” Credit Suisse Group Chief Executive Officer Brady W Dougan said.

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Credit Suisse’s investment banking segment posted income before taxes of 1,794 million Swiss francs on net revenues of 5,216 million Swiss francs,reflecting well-diversified results across the business,the statement added.

The investment banking division’s strong fixed income sales and trading revenues were driven by credit products,both high yield and investment grade,it said.

The private banking division,which comprises wealth management clients and corporate and institutional clients’ businesses,reported strong income before taxes of 892 million Swiss francs in the first quarter.

The bank’s asset management division raked in income before taxes of 166 million Swiss francs in Q1 compared to a loss of Swiss francs 490 million a year ago.