Credit Suisse (CS) reported 1.22 billion Swiss Francs in net profit (1.12 france per share). This was down from 3.19 billion francs (2.82 francs per share) a year earlier and almost double the mean estimate. But it was profit!
Management attributed the profit decline to “an industry-wide decline in origination activity, particularly in the structured products and leveraged finance businesses.” But what an improvement from last quarter, when a series of mark-downs on CS’s credit book contributed to a 2.1 billion franc net loss.
CS also made progress de-leveraging its balance sheet, reducing exposure to leveraged finance and commercial mortgages 31% and 22% respectively quarter-over-quarter. CS’ Tier 1 ratio also improved to 10.2%