Credit Suisse Group AG reported a 1.05 billion Swiss francs ($1.09 billion) net profit for the second quarter, bouncing back from a 700 million francs loss in the same period last year, while net revenue rose 8% to 6.94 billion francs.
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Tidjane Thiam, chief executive officer, said: "Credit Suisse reported improved profits in the second quarter. Asia Pacific delivered a strong performance. Effective collaboration and alignment between our Private Banking and Investment Banking franchises have led to excellent growth in profits in Asia Pacific.
"Overall, our wealth management activities produced an improved performance and generated a good return on regulatory capital as a few initiatives are bearing fruit, particularly in Asia Pacific and in Switzerland.
"During the quarter, we launched our new advisory offering, Credit Suisse Invest, in Switzerland, following the Asia Pacific launch of the digital private banking platform in the first quarter.
"In our investment banking activities, profits declined in spite of a better performance in equities and advisory due to an increase in costs. We reduced our leverage exposure in the investment bank during the quarter and that process must continue."
David Mathers, chief financial officer, said: "Credit Suisse delivered improved pre-tax income of CHF 1,646 million in the quarter. We saw strong growth in Asia Pacific across both divisions.
"In Wealth Management Clients, we attracted CHF 9 billion of net new assets and reported an 18% increase in pre-tax profit, driven by improved net interest income and higher client activity."
"We saw continued progress on capital and leverage. Our look-through CET1 ratio stood at 10.3% at the end of the quarter, up from 10.1% at the end of 2014.
"In 2Q, we benefited from solid quarterly profitability and higher take-up than assumed for the 2014 scrip dividend.
"We achieved USD 81 billion in leverage reduction in Investment Banking in the first half of the year, with our look-through BIS tier 1 leverage ratio increasing to 3.7%, and we remain on track to meet our year-end targets."
"So far in the third quarter, we have seen continued momentum in Asia Pacific, Wealth Management Clients and Equities. However, the weaker trends in the fixed income markets that we saw in June have continued into July, and the third quarter normally sees some seasonal weakness." ■