Credit Suisse posts a 24% jump in second-quarter net profits and shakes up its investment-banking division
Credit Suissereported a 24% jump in second-quarter net profits, driven by a surge in investment banking and capital market sales.
- The Swiss bank announced sweeping structural changes by merging its investment banking and trading divisions onto a single integrated platform with effect from August 1.
- The move is expected to generate annual savings of 444 million Swiss Francs ($437 million) from 2022 onwards.
- Risk and compliance functions were also combined under the new chief executive's first restructuring of the bank.
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Income attributable to shareholders rose to 1.2 billion Swiss Francs ($1.3 billion) versus 937 million Swiss Francs ($1 billion) last year, beating Bloomberg analyst estimates.On strong trading performance, the bank's net revenues jumped 11% to CHF 6.2 billion ($6.7 billion) for the second quarter.Advertisement
Fixed income sales and trading revenues rose 151% year-on-year helped by emerging market rates, credit, and foreign exchange products.
Credit Suisse set aside CHF 296 million ($323 million) as a provision to cover bad loans related to the
Below are the key numbers for the bank's second-quarter 2020:Profit attributable to shareholders: CHF 1.2 billion ($1.3 billion) versus a CHF 713 million ($780 million) Bloomberg estimate. Net revenue: CHF 6.2 billion ($6.7 billion) versus a 5.6 billionCHF ($6 billion) estimate.Advertisement
Loan loss provisions: 296 million francs ($323 million) versus 444 million ($485 million) estimate
As part of the
The move is aimed at technology integration on a client-centric global platform.
From 2022 onwards, the bank aims to generate savings of about 400 million Swiss Francs ($437 million) — to allow for reinvestment and growth initiatives — through the integrated platform.Among the structural changes, the bank promoted Brian Chin to head its investment banking division and said David Miller would step down from the executive board. Chin was previously the bank's head of global
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