Credit Suisse (Attractive*) said first-quarter net income dropped 34% to CHF 859m as earnings at the investment bank declined. Earnings missed the CHF 1.09bn average market estimate surveyed by Bloomberg. Revenues came in at CHF 6.47bn, also lower than expected. The investment bank posted a 36% decline in pretax profit to CHF 827m, clearly missing the CHF1.02bn analysts’ estimate.
Revenue from debt trading dropped 25% to CHF 1.49bn on a lower contribution from rates and emerging markets businesses, while equities revenue fell 7.4% to CHF 1.2bn. The private banking and wealth management unit, which encompasses all other businesses, saw earnings rise 15% to CHF 1.012bn, beating estimates. Private banking and wealth management units attracted 16bn in net new money. The core capital rate (CET1 Basel III) was 10% at the end of March, the same as at the end of last year. The second- biggest Swiss bank remained cautiously optimistic in its outlook.
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