July 25 - Credit Suisse's investment bank drives a one-third jump in second-quarter group earnings, while higher interest rates should help future profits at its private bank. Sonia Legg reports.
1.05 billion Swiss francs ($1.2bln) is today's daily digit - Credit Suisse's net profit for the second quarter. The Swiss bank's slimmed down investment arm was largely responsible. Its net profit doubled, contributing to an overall jump of a third. Like its Wall Street rivals it benefitted from strong trading in stocks and bonds. At least it did until the U.S. Federal Reserve raised the prospect of cutting back stimulus. The bank hopes a rise in interest rates will offset that although Robert Cole from Reuters BreakingViews warns against complacency. (SOUNDBITE) (English): ROBERT COLE, REUTERS BREAKINGVIEWS, SAYING: "On one level rising interest rates does some favours for banks but at the same time it changes the competitive dynamics of this and while it might be good for Credit Suisse it might be better for somebody else who plays that market more effectively." Angeline Ong says Starmine data - which looks at equity performance - also suggests it's going to be tough. (SOUNDBITE) (English): REUTERS REPORTER ANGELINE ONG, SAYING: "In terms of return on equity, which measures a firm's profitability, Credit Suisse comes in at 7.4 paling in comparision to Goldman Sach's 10.3 and JP Morgan Chase's 11.5. Same story when we look at their ARM scores - Gold and JPMorgan Chase bth80 and 91, But Credit Suisse only gets 29 out of a best possible scores of 100." Shares fell 2% - in contrast to a 13% rise over the the past three weeks. A global crackdown on Swiss bank secrecy hasn't helped. European clients have been withdrawing money to avoid tax probes rattling Credit Suisse's normally stable wealth management arm.