Swiss lender Credit Suisse Group AG (CS) Wednesday reported a sharp increase first-quarter profit, reflecting mainly higher trading revenues from its Investment Banking division as well as a decline in expenses. The bank said it has begun to accrue for cash dividends this year.
Credit Suisse said its first-quarter results show positive momentum of transformed business model, following transition to Basel III on January 1, 2013. The company has achieved cost savings of 2.5 billion Swiss francs, excluding certain significant items, which is on track to reach its cost run-rate reduction target of 4.4 billion francs by the end of 2015.
In addition, Credit Suisse said it is on track to exceed its Look-through Swiss Core Capital ratio target of 10 percent during the middle of this year and have begun to accrue for cash dividends in respect of our 2013 earnings.
Investment Banking division had stable revenues and pre-tax income, reflecting a reduced cost base and lower risk-weighted assets, the company said. Net revenues were 3.95 billion francs. Fixed income sales and trading revenues improved 3 percent, and underwriting and advisory revenues increased 3 percent from last year.
Private Banking & Wealth Management quarterly net revenues were 3.30 billion francs, down 5 percent from last year, reflecting mainly a gain from partial sale of an investment in Aberdeen Asset Management in the prior-year quarter, and lower net interest income.
Brady Dougan, CEO of the company said, "With an underlying return on equity of 16% for the first quarter of 2013, we continue to show strong client franchise momentum and generate high returns on a substantially lower risk and cost base."
In the first quarter, net income attributable to shareholders surged to 1.30 billion francs, or about $1.38 billion, from 44 million francs in the previous year. On a per share basis, earnings climbed to 0.76 francs from 0.03 francs in the prior year.
Excluding items, underlying net income attributable to shareholders increased to 1.46 billion francs from 1.06 billion francs a year earlier.
Net revenues for the quarter grew to 7.19 billion francs from 6.05 billion francs, reflecting improved transaction activity.
Net interest income declined to 1.81 billion francs from 1.88 billion francs a year earlier. Commissions and fees were 3.35 billion francs, up from 3.17 billion francs last year.
Trading revenues surged to 1.82 billion francs from 189 million francs in the preceding year.
Total operating expenses fell to 5.28 billion francs from 5.82 billion francs a year ago.
In Zurich, Credit Suisse shares are currently trading at 26.5 francs, up 0.19 percent.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.