By John Letzing
ZURICH--Swiss bank Credit Suisse Group AG on Tuesday posted net
profit of 1.1 billion Swiss francs ($1.18 billion) for the first
quarter, compared with 859 million francs reported in the same
period last year, as net revenue rose 3% to 6.67 billion
francs.
Analysts had expected Zurich-based Credit Suisse to report net
profit of 970 million francs for the quarter.
Credit Suisse's results reflect a quarter in which the bank has
had to grapple with an abruptly strengthened Swiss franc following
a decision in January by the Swiss central bank to remove a cap on
the currency. The currency swing has been expected to take a bite
out of profit at Credit Suisse and other Swiss banks, which account
for much of their costs in francs while deriving revenue in dollars
and euros.
Earlier this year, Credit Suisse announced plans to cut 200
million francs in costs in response to the strengthened franc.
Still, some analysts have suggested that the strong franc could
threaten the bank's already relatively thin capital cushion, and
reduce profit at its wealth management business.
The first quarter of this year was the second-to-last at the
bank for longtime Credit Suisse Chief Executive Brady Dougan, who
is expected to step aside at the end of June.
Write to John Letzing at john.letzing@wsj.com
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