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The profit of Credit Suisse dropped with 45% in the first quarter

Credit Suisse Group AG, the second largest Swiss bank, said 45 percent drop in profit for the first quarter, which did not meet analysts' expectations. The dsappointing results are a consequence of reduced income investment bank, and payments associated with its own debt. The net profit of Credit Suisse fell to 1.14 billion francs from 2.06 billion francs in the same quarter a year earlier, announced on Wednesday Zurich-based bank. The profit of the bank was below expectations of analysts 1.32 billion francs. In February, chief executive of Credit Suisse Brady Dugan lower forecast profitability of the bank in response to tighter capital requirements. Credit Suisse, which suffered relatively less losses during the financial crisis than other banks, including its larger Swiss rival UBS AG, is trying to expand its market share in investment banking. Last year, Credit Suisse hired new employees in the credit and its foreign department.
"Despite its success during the financial crisis, investment banking, Credit Suisse is facing problems similar to those of UBS, and more specifically with issues related to currency transactions and operations with raw materials," said Peter Thorne, an analyst-based London Helvea. Since the beginning of the year, shares of Credit Suisse were up 4.3 percent compared to 12% for UBS.
The profit before tax of the bank for the first quarter fell by 25% yoy to 1.34 billion Swiss francs due to weak earnings and price increases. For the period revenues from securities trading fell 7.7 percent to 4.02 billion francs. Earnings Credit Suisse was limited and payments before taxes of 617 million francs due to the increase in spreads on its debt. Yesterday, UBS announced 18% drop in profit for first quarter year on year to 1.81 billion francs after the pre-tax profit of the bank fell 30 percent due to lower revenue from trading stocks, bonds, currencies and raw materials. The Bank's shares rose after UBS announced the highest levels of imported capital from new customers for the past 4 years.