Credit Suisse reported quarterly revenue of 1.16 billion Swiss francs, up 40% compared with the same period the previous year. Pre-tax profits more than doubled in comparison with last year, but it’s important to note that the 2012 figure was unusually low due to the eurozone debt crisis.
The share price is down 2.6% today, as investors had high hopes from the earnings report, but the stock is still up 12% on the month. The revenue from the bond-trading team took a hit this quarter, when investors were afraid that the Federal Reserve might curtail its bond-buying scheme. On the other hand, the equity division performed well as confidence grew due to equity markets reaching multi-year highs.
The private banking operation announced a 7% drop in pre-tax profits compared with the year before, but this was partly due to a 100 million francs payment to the UK government in relation to withholding taxes.
Credit Suisse has been under pressure recently, as the Swiss central bank has tightened its capital requirement regulations. However, this could have a positive impact on the share price in the long term.