Credit Suisse said first-quarter profit edged up 8 percent, as dramatic spending cuts offset a drop in revenue. The bank voiced cautious optimism for the current quarter.
Swiss-based Credit Suisse said net profit rose to 749 million Swiss francs ($735 million) in the quarter ended March 31, from 694 million francs year ago. The profit was bolstered by nearly 300 million francs in spending cuts, which offset a 4 percent drop in overall revenue.
The Swiss bank's quarterly report is the first after CEO Tidjane Thiam concluded a gruelling three-year restructuring, which included two cash calls and massive investment into the fast-growing Asian wealth market. Credit Suisse said it observed favorable «momentum» towards quarter-end, and is cautiously optimistic for the current quarter.
Softer Swiss Profits
The investment banking and capital markets arm swung to a pre-tax loss of 93 million francs as debt underwriting and advisory revenue plummeted. Profit at Credit Suisse's domestic unit softened, while that of its international private banking arm overseen by Iqbal Khan rose 8 percent on the year.
The international private banking arm won 1.3 billion francs in net money, which translates to a rate of 2.7 percent – below market expectations. In Asia, the unit took in 5 billion francs, which translates to a heady growth rate of 8 percent.
Cross-town rival UBS, where CEO Sergio Ermotti issued a veiled profit warning last month, reports the quarter on Thursda. Julius Baer doesn't report quarterly results, but discloses some of its key four-month figures on May 24.
