Credit Suisse reports 1.6 billion francs net profit for Q2

Geneva  - Credit Suisse, the largest Swiss bank by market capitalization, reported Thursday a net profit of 1.6 billion francs (1.5 billion dollars) in the second quarter.

The bank said the results reflect mark-to-market write-downs of 1.1 billion francs from changing credit spreads on its own debt and 0.5 billion francs relating to a settlement it paid out to the Huntsman Corporation in the United States.

The bank's private banking division, which brought in some 10.7 billion francs in net new assets, had 935 million francs in profit, but that was still a 23 per cent decline from the second quarter of 2008. Its wealth management division reported a profit of 662 million francs, down 20 per cent.

Its investment banking division reported income before taxes of 1.6 billion. The bank said it was continuing to reduce its exposure to risky assets.

"We expect the global economic environment to remain challenging and uneven business conditions to persist," said chief executive officer Brady Dougan in a statement, adding that he thought Credit Suisse was in position to do well, even if market conditions slumped. (dpa)