Credit Suisse's quarterly profit surged by three-quarters due to a fund unit disposal. It warned of stormier times ahead.
The Swiss bank's net profit climbed more than 75 percent to 1.3 billion Swiss francs ($1.3 billion) in the first quarter, it said in a statement on Thursday. A 268 million franc gain from selling Investlab, a fund platform, boosted the result, as well as a major tax break.
The quarter, managed half by previous CEO Tidjane Thiam and half by his successor, Thomas Gottstein, was marked by the emergence of the coronavirus pandemic. The ensuring market sell-off drove transaction income in its private bank nearly one-third higher on the year, as it had previously flagged.
Cautious for 2020
Credit Suisse cushioned itself with more than 1 billion francs in reserves for the coronavirus crisis during the quarter, including 568 million francs against the credit defaults it expects in the future. The bank was cautious in its outlook: its corporate banking arm as well as asset management will continue to build reserves and are likely to write-down loans, it said.
In addition, fees for advising companies and underwriting securities issues won't snap back entirely, it said, at last until the pandemic eases and the global economy begins to recover. «We believe we can maintain a resilient performance through this crisis,» the bank said. Credit Suisse's crosstown rival UBS will report the quarter on Tuesday.
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