CS can more than double its earnings in the second quarter

Credit Suisse is still on the road to recovery: it made a lot more money in the second quarter of 2018 and more than doubled its net profit. In the outlook for the rest of the year, but it shows rather cautious.

The net result, the second largest Swiss bank posted a net profit of 647 million francs. This corresponds to a 114% increase over the same period last year, as the CS announced on Tuesday. At pre-tax level, profit was CHF 1.05 billion (+ 71%) and, adjusted for various factors, was CHF 1.3 billion (+ 88%).

The Bank's results were significantly lower. Overall, the gain was only 7% to 5.60 billion Swiss francs. With a business expense of 4.47 billion, the ratio of costs and revenues (operating ratio) is about 79.8%. This means that the bank will spend about 80 cents for each franc taken. Overall, the numbers in all areas exceeded the consensus estimates of AWP.

CEO Tidjane Thiam is also very pleased with the publication: "We have achieved our highest pre-tax adjusted earnings in the last twelve quarters and the profits of the seventh consecutive quarterly increase."

Management units of 39, badets received fresh money of 9.1 billion francs during the period from April to June. Compared with the 14.4 billion in the first quarter, it is a little less, the main competitor UBS had recorded during this period, but an outflow of 1.2 billion Swiss francs.

Assets under management rose to 1,398 billion francs at the end of June, slightly higher than at the end of March. However, with 3,242 billion UBS, it is twice as large as CS

As we know, cost reduction is a major problem for most major banks – just like Credit Suisse. In the first half of the year, he recorded additional savings of $ 0.5 billion, he added. The bank believes it is on track in this respect, confirming its goal of reducing the cost base to less than 17 billion francs by the end of the year.

Regarding the future, CS is relatively cautious. In the remainder of 2018, it is likely that there will be "phases of significant uncertainty" due to geopolitical developments and tensions in world trade. However, the bank still sees growth potential in some areas and is on track towards an equity target