Credit Suisse's profit rose in the second quarter, as its private bank and Swiss unit made up a shortfall in Asia and in investment banking.

Zurich-based Credit Suisse said profit nearly doubled to 303 million Swiss francs in the three months to June 30. The bank's revenue was largely steady, but the bank slashed expenses dramatically to shield profits.

Chief Executive Tidjane Thiam is on a 4.2 billion Swiss franc drive to cut spending at Credit Suisse, which just raised 4 billion francs from shareholders to plump up its capital cushion. Thiam lopped 237 million francs off spending from the first quarter, or 5 percent.

The thriftiness is necessary: Credit Suisse's revenue didn't grow on the year and actually fell 5 percent from the first quarter.

Swiss Shines

Within its six divisions, Credit Suisse's Swiss unit and its private bank worked the most efficiently. The Thomas Gottstein-led Swiss business actually hiked revenue by 5 percent while trimming spending, resulting in an 11 percent rise in pre-tax profit.

Similarly, the private bank hiked revenue from net interest income, fees and commissions and transaction and performance revenues, while spending less providing for credit losses and restructuring. This yielded a strong 49 percent rise in pre-tax profit.

Subdued Trading

Credit Suisse's trading arm hiked profits thanks to a healthy quarter in credit and spending cuts, as revenue from securitized products rose thanks to non-agency and asset finance results. Trading in investment grade bonds was subdued and low volatility as well as tighter credit spreads hit trading.

The units made up for a shortfall in Asia, hit by an investment banking slide.

The bank said it expects volatility and client activity to remain at low levels, which will weigh on trading, and it also cautioned of a private banking dip in the third quarter, which is when wealthy clients typically go on holiday and shut off their portfolios.

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