Responding to media reports about its second-quarter financial performance, Swiss banking giant Credit Suisse Group (CS: Quote) on Friday said it expects the quarter to be profitable at the Group level and in all its divisions.
Earlier, Swiss newspaper Tages-Anzeiger reported the bank was profitable in a quarter, which was generally expected to be weak amid the worsening euro zone crisis. Credit Suisse reports second-quarter results on July 26.
In Zurich, Credit Suisse shares rose 3.32 percent and currently trading at 17.13 Swiss Francs, on a volume of 3.6 million shares.
For the prior year second quarter, the bank had reported net income attributable to shareholders of 768 million Swiss francs and underlying net income of 835 million francs. The bank's all three divisions - Private Banking, Investment Banking and Asset Management - also had reported profit.
In the sequential first quarter, the company had recorded a modest profit of 44 million francs, despite a hefty charge tied to tightening of its own credit spreads, in comparison to previous year's profit of 1.14 billion francs.
On last Friday the company has said that its Board of Directors, following a review of its capital situation, is comfortable with the progress that has made towards meeting the Basel 3 capital requirements. The bank added then that the Board is confident that management's plans will continue to ensure that Credit Suisse not only fulfills, but exceeds its regulatory capital requirements.
This was in response to Swiss central bank's comment in its annual financial stability report on June 14 that Credit Suisse has to boost capital "substantially" this year to prepare for a potential worsening of the European debt crisis.
The Swiss bank also faced last week a three-notch downgrade by ratings agency Moody's Investors Service. But Credit Suisse responded then that it is "pleased" that Moody's continues to recognize it as one of the most highly rated banks in its peer group, and that the rating change will have no material impact on its liquidity and funding planning.
Speculation has been on rounds that the bank, to cope up with pressure from all sides, is planning to further reduce the size of its European investment banking department by as much as 30 percent. The new job reductions are part of the bank's previously announced plans to eliminate 3,500 jobs. Credit Suisse confirmed in March 2012 that it has already eliminated about 2,000 of these 3,500 jobs.
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by RTT Staff Writer
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