Business

Credit Suisse profits hurt by weak markets

Credit Suisse logo outside a Zurich branch
Image caption The results undershot market expectations

Credit Suisse's profits fell 74% in the third quarter, thanks to choppy stock markets hitting its investment bank.

The Swiss bank earned 609m Swiss francs ($630m, £400m) during the three months, down from 2.4bn francs a year ago.

Investment banking revenues fell by 30%, mainly because of low client activity in the group's equity advisory and underwriting businesses.

Stock markets took a battering over the summer because of fears over eurozone debt and a US double-dip recession.

As a result, fewer companies paid the bank to arrange share offerings, advise on mergers and acquisitions, or provide other such services during the quarter.

Below expectations

"Delivering underlying net income of one billion Swiss francs was a solid result in a quarter characterized by challenging conditions with low market volumes and subdued client activity," said Credit Suisse chief executive, Brady Dougan, in the bank's financial results statement.

However, the profit figure was well below analysts' expectations of about 1bn Swiss francs.

Credit Suisse's share price was being quoted 3% lower ahead of the open of European stock markets on Thursday.

The results were weaker than an already poor second quarter of the year, that saw profits drop to 784m Swiss francs.

The Swiss bank's announcement comes after a string of results from US banks. Goldman Sachs reported surprisingly strong profits, while Morgan Stanley revealed an unexpected loss in the same quarter.

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