Credit Suisse profit surges after disposals

Credit Suisse Group beat market forecasts with a surge in third-quarter net profits amid cost cuts and asset sales.

Credit Suisse Group beat market forecasts with a surge in third-quarter net profits amid cost cuts and asset sales.

Shares fell nearly 3 per cent to 47.35 Swiss francs in early trade, even as Europe's eighth-largest bank by market value said net profit rose to 2.045 billion Swiss francs($1.53 billion) in the quarter- above analysts' expectations of around 1.999 billion Swiss francs.

Credit Suisse made a record third-quarter loss of 2.148 billion Swiss francs in the same period last year as it suffered from a global market rout and problems at its Credit Suisse First Boston investment bank. Credit Suisse returned to profit this year and made a net profit of 1.346 billion Swiss francs in the second quarter.

The Swiss group declined to give a detailed outlook for earnings and signalled that further cost cuts would be unavoidable.

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"Cost control continues to be a very high priority across the group," chief financial officer Mr Phil Ryan said. "We're done with the announced big headcount programmes, but there is still more cost reduction in all units to be done."

He warned the fourth quarter was traditionally a tough one for the banking industry but declined to say how business had progressed for the group so far in the period.