Credit Suisse Profit Beats Forecasts -- Update

By John Letzing 

ZURICH--Swiss bank Credit Suisse Group AG on Tuesday posted net profit of 1.1 billion Swiss francs ($1.18 billion) for the first quarter, compared with 859 million francs reported in the same period last year, as net revenue rose 3% to 6.67 billion francs.

Analysts had expected Zurich-based Credit Suisse to report net profit of 970 million francs for the quarter.

Credit Suisse's results reflect a quarter in which the bank has had to grapple with an abruptly strengthened Swiss franc following a decision in January by the Swiss central bank to remove a cap on the currency. The currency swing has been expected to take a bite out of profit at Credit Suisse and other Swiss banks, which account for much of their costs in francs while deriving revenue in dollars and euros.

Earlier this year, Credit Suisse announced plans to cut 200 million francs in costs in response to the strengthened franc. Still, some analysts have suggested that the strong franc could threaten the bank's already relatively thin capital cushion, and reduce profit at its wealth management business.

The first quarter of this year was the second-to-last at the bank for longtime Credit Suisse Chief Executive Brady Dougan, who is expected to step aside at the end of June.

Write to John Letzing at [e-mail]

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