Credit Suisse to post a profit, bank confirms
Ahead of its second-quarter earnings report due 26 July the bank confirmed it would make a profit
By CFOWorld staff | CFO UK | Published 12:30, 29 June 12
Credit Suisse is to post a profit for the second quarter at the group level and in all its divisions, the Swiss bank said on Friday in an unplanned statement in a bid to restore trust in its business.
"Further to its statement of last Friday and in response to media reports about its second quarter financial performance, Credit Suisse informs that it expects based on quarter-to-date information to be profitable at the group level and in all its divisions," the Swiss bank said in a brief statement during trading hours on the last day of its second quarter.
Earlier on Friday, Switzerland's Tages-Anzeiger newspaper said Credit Suisse would make a profit in its second quarter.
Credit Suisse shares have slumped to 20-year lows this week following a rebuke from the Swiss National Bank that it needs to bolster its capital base and a downgrade of its long-term debt by ratings agency Moody's.
That is despite a statement last Friday in which Credit Suisse's board backed chief executive Brady Dougan's strategy.
It also said the bank might boost its capital by bringing forward 6 billion Swiss francs (£4.03 billion) of contingent convertible bonds, or CoCos, to the Olayan family and Qatari fund, both existing shareholders.
Credit Suisse declined to comment on the CoCos.
Credit Suisse stock, which opened sharply higher after sliding Thursday, let some early gains slip after the bank's announcement. At 0850 GMT, the shares were 2.8 percent higher amid a 2.3 percent rise in the European banking index.
Swiss shares are traditionally halted for major statements during trading hours, but Credit Suisse stock continued trading. A spokesman for the SIX Swiss Exchange said the bourse had been informed ahead of time, but decided against halting trading based on a combination of factors such as the statement being unsurprising and reasonably simple for investors to digest.
Credit Suisse is due to report second-quarter earnings on 26 July. The bank eked out a small net profit in the first quarter.
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