Credit Suisse has beaten the most optimistic forecasts with a first-quarter net profit of 2.6 billion Swiss francs ($2.10 billion), driven by its investment banking and wealth management businesses.
Europe's eighth-largest bank by market value also reported on May 02, a net inflow of 14.5 billion francs into its wealth management business, comfortably beating the consensus of analysts' forecasts of a 10 billion franc inflow.
"At first glance, I think it's an excellent result. Wealth management and the investment bank are the clear drivers," said Claudia Meier, an analyst at Vontobel in Zurich, adding Credit Suisse's Winterthur insurance unit also had a strong result. Credit Suisse shares closed up 1.3 percent at 78.90 francs and the results were seen as putting the bank on course to meet an ambitious net profit target of 8.2 billion francs in 2007.
A Reuters poll of 17 analysts gave a median net profit forecast of 2.051 billion Swiss francs ($1.64 billion). US investment banks such as Goldman Sachs and Merrill Lynch have already reported sharply higher first-quarter profits.
Trading revenues leapt 138 percent from the fourth quarter of 2005 to 4.31 billion francs and were up 136 percent from the first quarter of 2005. Commission and fee income crept up to 4.271 billion francs in the first quarter from 4.096 billion in the fourth quarter of 2005 and was up by nearly a third from 3.237 billion in the first quarter of last year.
Consolidated net revenues were 21.779 billion Swiss francs, a 54 percent jump from the fourth quarter of 2005 and a rise of 29 percent from last year's first quarter. The bank also reported return on equity of 24.4 percent, up from 20.6 percent in the first quarter of 2005.