Credit Suisse chief executive Brady Dougan said that the bank’s reported results were adversely impacted by accounting driven fair value losses due to tightening of its own credit spreads.
"We had a good start to 2012. We began to see the effects from the measures we announced in mid-2011 to evolve our business model and cost structure and we benefited from an improved market environment," Dougan said.
For the quarter period ended on 31 March 2012, Credit Suisse registered a normalized pre-tax income of CHF1.9bn ($2.1bn), while normalized net income attributable to shareholders stood at CHF1.3bn ($1.4bn).
During the latest quarter period, the bank reported a normalized return on equity of 15.9%, net income attributable to shareholders of CH44m ($48.3m), diluted earnings per share of CHF0.03.
"We further reduced risk-weighted assets in the first quarter, and are now close to our previously announced year-end 2012 target with Basel III risk-weighted assets of USD 210 billion in Investment Banking. During the quarter, we successfully issued CHF 750 million of contingent convertible bonds, thereby fulfilling our expected Swiss requirement for high-trigger contingent capital."
The private banking business, which includes the global Wealth Management Clients business and the Swiss Corporate & Institutional Clients business, registered net revenues of CHF2.6bn ($2.91bn), with 3% increase from the fourth quarter of 2011, while income before taxes stood at CHF625m during the first quarter of 2012.
During the first quarter of 2012, its investment banking sector net revenues were CHF4.1bn ($4.5bn) and income before taxes was CHF993m ($1bn).
Asset management segment net revenues were CHF663m ($729m) and income before taxes of CHF250m ($275m) with a pre-tax margin of 38% during the latest quarter of 2012.
Credit Suisse offers clients services of private banking, investment banking and asset management across the globe in more than 50 geographies.
