Credit Suisse beats earning estimates following a "slow start"
- 6 months ago
Credit Suisse has posted yet another increase in net profit for the first quarter of 2019, its first following the completion of its three-year restructuring plan.
The bank reported a net income of 749 million Swiss francs ($733.93 million) for the first quarter of this year, an 8% increase year-on-year.
Analyst expectations were pointing to a net income of 692 million Swiss francs, net revenue hit 5.4 billion Swiss francs, versus 4.8 billion in the fourth quarter of 2018.
Its CET 1 ratio stood at 12.6% in the first quarter, unchanged from the previous quarter.
Credit Suisse CEO, Tidjane Thiam, said that it was a “good quarter overall, after a very slow and difficult start.”
In an earnings statement, the bank said it was operating with a lower risk profile, a stronger capital base and a structurally lower cost base.
Thiam reiterated that the bank’s model is “resilient,” which has allowed it to protect its “bottom line during periods when markets are challenging.”
The performance in the first quarter was particularly driven by the bank’s international wealth management unit, which delivered a net revenue of 1.4 billion Swiss francs.
However, the investment banking arm did report lower revenues compared to the fourth quarter, with a total net revenue of 356 million Swiss francs.
Nevertheless, shares of Credit Suisse were 3% higher during early exchanges.
Source: Smart Trend Team