Credit Suisse Group AG, Switzerland’s second-biggest bank, said earnings dropped 62 percent, less than analysts estimated, as the securities unit returned to profit and the company attracted new investments from wealthy clients.
Second-quarter net income fell to 1.22 billion Swiss francs (US$1.18 billion), or SF1.12 a share, from SF3.19 billion, or SF2.82, a year earlier, the Zurich-based company said in a statement yesterday. The shares rose the most in four months after earnings were almost double what analysts estimated.
Chief executive officer Brady Dougan cut leveraged loans and real estate assets by 68 percent over the past nine months to limit second-quarter writedowns to 22 million francs and said he will continue to manage the bank “conservatively.”
Credit Suisse’s wealth management unit got a net SF15.4 billion in the quarter, after the 48-year-old American stepped up hiring of money managers while larger Zurich rival UBS AG reels from the biggest subprime mortgage losses of any European bank.
“Brady Dougan has been able to limit the ongoing deterioration of the business,” said Guy de Blonay, who helps oversee about US$41 billion at New Star Asset Management Group Ltd. “Credit Suisse has been able to cut risky positions a bit faster than probably the average in the sector.”
The bank follows Goldman Sachs Group Inc, Morgan Stanley and JPMorgan Chase & Co in reporting a profit for the second quarter. Citigroup Inc, the biggest US bank by assets, had a net loss of US$2.5 billion.
UBS said earlier this month that earnings were “at or slightly below break-even.”
Deutsche Bank AG may report a second-quarter net income of 518 million euros (US$814 million) on July 31, the median estimate of 13 analysts surveyed by Bloomberg indicated.
“We anticipate that the current challenging market conditions will persist over the near to medium term and we will continue to manage our business conservatively,” Dougan said.
Credit Suisse reported a pretax profit of SF281 million, compared with SF2.5 billion a year ago and a loss of SF3.46 billion in the first quarter. Corporate and retail banking saw a 2.6 percent increase in pretax profit to SF390 million.
Authorities have detained three former Taiwan Semiconductor Manufacturing Co (TMSC, 台積電) employees on suspicion of compromising classified technology used in making 2-nanometer chips, the Taiwan High Prosecutors’ Office said yesterday. Prosecutors are holding a former TSMC engineer surnamed Chen (陳) and two recently sacked TSMC engineers, including one person surnamed Wu (吳) in detention with restricted communication, following an investigation launched on July 25, a statement said. The announcement came a day after Nikkei Asia reported on the technology theft in an exclusive story, saying TSMC had fired two workers for contravening data rules on advanced chipmaking technology. Two-nanometer wafers are the most
NEW GEAR: On top of the new Tien Kung IV air defense missiles, the military is expected to place orders for a new combat vehicle next year for delivery in 2028 Mass production of Tien Kung IV (Sky Bow IV) missiles is expected to start next year, with plans to order 122 pods, the Ministry of National Defense’s (MND) latest list of regulated military material showed. The document said that the armed forces would obtain 46 pods of the air defense missiles next year and 76 pods the year after that. The Tien Kung IV is designed to intercept cruise missiles and ballistic missiles to an altitude of 70km, compared with the 60km maximum altitude achieved by the Missile Segment Enhancement variant of PAC-3 systems. A defense source said yesterday that the number of
A bipartisan group of US representatives have introduced a draft US-Taiwan Defense Innovation Partnership bill, aimed at accelerating defense technology collaboration between Taiwan and the US in response to ongoing aggression by the Chinese Communist Party (CCP). The bill was introduced by US representatives Zach Nunn and Jill Tokuda, with US House Select Committee on the Chinese Communist Party Chairman John Moolenaar and US Representative Ashley Hinson joining as original cosponsors, a news release issued by Tokuda’s office on Thursday said. The draft bill “directs the US Department of Defense to work directly with Taiwan’s Ministry of National Defense through their respective
Tsunami waves were possible in three areas of Kamchatka in Russia’s Far East, the Russian Ministry for Emergency Services said yesterday after a magnitude 7.0 earthquake hit the nearby Kuril Islands. “The expected wave heights are low, but you must still move away from the shore,” the ministry said on the Telegram messaging app, after the latest seismic activity in the area. However, the Pacific Tsunami Warning System in Hawaii said there was no tsunami warning after the quake. The Russian tsunami alert was later canceled. Overnight, the Krasheninnikov volcano in Kamchatka erupted for the first time in 600 years, Russia’s RIA
RSS