Credit Suisse Group has reported net income attributable to shareholders of CHF 1.57 billion in Q2, 2009, as compared with net income of CHF1.21 billion in the prior-year period. Core net revenues were CHF8.61 billion in Q2, as compared with the prior-year period. The return on equity attributable to shareholders was 17.5% and diluted earnings per share were CHF1.18. The tier 1 ratio was 15.5%.
Q2 results include net fair value charges of CHF1.1 billion (before tax) resulting from improving credit spreads on Credit Suisse debt, charges of CHF0.5 billion (before tax) relating to the settlement with Huntsman Corporation, and a discrete tax benefit of CHF0.4 billion. Excluding these items, Credit Suisse would have recorded after-tax net income of CHF2.5 billion in Q2, and return on equity of 27.4%, both antially higher than the first quarter of 2009.
Brady Dougan, CEO, Credit Suisse, said: “We continue to engage in close dialog with regulators around the world and we appreciate the importance of building a more robust and sustainable financial services industry. We believe that we are well positioned to benefit from our very strong capital position and our differentiated business model in the evolving industry landscape. We had a solid quarter in Private Banking, with strong inflows across all regions and a high gross margin in Wealth Management, partly driven by increased momentum in revenues from delivering integrated solutions jointly with Investment Banking.”
With regard to the performance of Investment Banking, he commented: “We made good progress in executing our differentiated strategy. We reduced our exposure to the areas we decided to exit. We gained significant market share in many products, including in prime services, cash equities, our suite of algorithmic and electronic trading tools and analytics, global rates, foreign exchange and high grade trading.”
“We expect the global economic environment to remain challenging and uneven business conditions to persist. However, if markets continue to improve we expect to see further momentum across our businesses, and if markets become more difficult we believe that Credit Suisse is positioned to perform well. The strength and stability of our integrated global bank is attractive to our clients and shareholders, he concluded.
