Credit Suisse reports 29% rice in Q2 profits; surpasses analysts’ estimates

Credit SuisseSwitzerland's largest bank Credit Suisse Thursday reported a net profit of 1.6 billion Swiss francs - or $1.5 billion - in the second quarter, largely because of an improvement in its investment banking business.

While the second-quarter profit figures fell below the first-quarter profit of 2 billion francs; they still were 29 percent higher than the year-before figures of 1.22 billion francs profit, as well as surpassed the analysts' estimates of 1.44 billion francs profit.

The increase in Credit Suisse's net profit came mostly from a much robust performance from its investment banking arm - which reported a pretax profit increase to 1.66 billion francs, from 304 million francs, after improved results in areas like rates and foreign exchange, cash equities, and trading of U. S. mortgage-backed securities.

The bank's net revenue in investment banking soared 62 percent to 6.01 billion francs, and the wealth management division of the bank drew 8.5 billion francs of net new assets. The shares of Credit Suisse rose 72 percent on the year.

Noting that the Credit Suisse group's market share grew across many products, and also that globally economy may see further challenges, BradyDougan, the Credit Suisse CEO, said in a statement from Zurich: "We expect the global economic environment to remain challenging and uneven business conditions to persist. If markets continue to improve we expect to see further momentum across all our businesses."