(22 October 2010 – Europe) Swiss bank Credit Suisse has reported a 74 percent slump in third-quarter net profit to 609 million Swiss Francs (A$631.25 million).The investment bank said the drop in profit, which exceeded analysts’ expectations, could be attributed to “challenging market conditions”.
The bank’s chief executive Brady Dougan could not give a clear outlook for the rest of the year, however said that the business model, the bank’s global presence and its market position would enable them to “deliver high returns and strong cash flows as markets improve”.
Analysts had forecast a net profit of 976 million francs for Credit Suisse, however some expected the low result due to higher salary and bonus costs because of hirings at its investment bank.
The bank’s chief financial officer, David Mathers, told reporters during a conference call that the quarter was marked by ‘low market volumes and subdued client activity’ and that ‘the industry is at a cyclical low.’ Core revenue was down 30 per cent to 6.28 billion francs due to lower trading.