Credit Suisse reported a better-than-expected 42 per cent rise in third-quarter net profit to 1.9 billion Swiss francs (€1.22 bn) today, as both its investment bank and its private bank boomed.
Net new money inflows into its core private banking business rose to 14.3 billion francs from 3.8 billion a year ago despite the summer season lull, helping to boost total assets under management to 1.405 trillion francs.
"The third-quarter result was satisfactory, as our group benefited from increased levels of client activity and the active market environment," Chief Executive Officer Oswald Gruebel said in a statement.
Cross-town rival UBS set a demanding benchmark for its smaller neighbour yesterday, reporting a record third-quarter profit and putting UBS within sight of its best full-year figures.
"The result is much better than expected," said a Zurich-based dealer. "In general, CS has a harder time coming up with good news as one always looks for something hidden in their results," he added.
Credit Suisse declined to give an earnings outlook for the last quarter of 2005 or for the full year because it was too dependent on financial markets, its Chief Financial Officer Renato Fassbind told reporters in a conference call.