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Last Updated: Wednesday, 2 November 2005, 12:06 GMT
Banking boom boosts Swiss banks
Credit Suisse headquarters in Zurich
Credit Suisse has enjoyed "satisfactory" trading
A boom in both investment and private banking has led to a surge in profits at Swiss banks.

Credit Suisse has reported a 42% rise in net profits for the July to September quarter, hot on the heels of market leader UBS's 71% rise.

"If markets are strong, people tend to do more transactions," said Credit Suisse finance chief Renato Fassbind.

Other banks have also enjoyed strong earnings recently from trading, and also from merger and acquisition deals.

"There is no doubt that the general market environment was very good," said Claudia Meier at Bank Vontobel in Zurich.

Late last month, JP Morgan, Merrill Lynch and Citigroup, as well as Lehman Brothers and Deutsche Bank, all reported strong third-quarter results.

Satisfactory performance

Credit Suisse - which is currently going through a restructuring - saw net profits rise to 1.92bn Swiss francs ($1.5bn; 846m) during the third quarter, thanks to both its private banking operations and its Credit Suisse First Boston investment bank.

Credit Suisse chief executive Oswald Gruebel
Credit Suisse chief Gruebel is optimistic

CSFB's income rose sharply as its traders performed well in both the stock and the bond markets.

"Our group benefited from increased levels of client activity and the active market environment," said chief executive Oswald Gruebel.

In the private banking arena, fees from Credit Suisse's wealthy private clients were greater than the costs it occurred as part of its efforts to expand in Asia and the Middle East.

"By building a global integrated bank that capitalises on our strengths and expertise in investment banking, private banking and asset management, I am convinced that we will realise our ambition to achieve sustainable growth," said Mr Gruebel.

Mr Gruebel described the latest result as "satisfactory".


SEE ALSO:
Wealth fees boost profits at UBS
01 Nov 05 |  Business
US banks buoyed by better trading
19 Oct 05 |  Business


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