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4th November 2011

Credit Suisse result - expense reduction

Credit Suisse reported Q3 net attributable to shareholders of CHF 683m (€561m £484m $775m ¥60.5bn Y4,928m) and CHF 2,590m (€2,129m £1,835m $2,940m ¥229.5bn Y18,688m) UP 12% and DOWN 39% on a year ago. It should be noted that the Q3 attributable to noncontrolling interests showed a reversal. The Q3 net profit was CHF 512m, a FALL of 42% and for the 9 months CHF 3,382m a FALL of 28%.


The bank gained CHF 1.3bn in the quarter from Debt Value Adjustment.It made charges of CHF 479m for litigation reserves and CHF 291m for restructuring. No surprise that investment banking showed a small loss. The dip in private banking was attributed to 'negative market sentiment' and the high value of the Swiss Frank. The bank gained Net New Assets of CHF 7.1bn (€5.8bn £5.0bn $8.1bn ¥629bn Y51.2bn).


The bank announced further expense cuts primarily by means of a further 1,500 jobs cut, on top of the 2,000 jobs cut announced in July. In the results teleconference the bank made clear that it could not foresee any quick upturn in financial markets and that the bank's mid-term profits would continue to be impacted by capital requirements and regulatory costs.



Income Summary 2011-Q3 2010-Q3 2011-9m 2010-9m
CHFm CHFm CHFm CHFm
Interest and dividend income 5,375 6,037 17,909 19,902
Interest expense -3,729 -4,321 -13,133 -15,037
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Net interest income 1,646 1,716 4,776 4,865
Commissions and fees 3,061 3,258 10,195 10,251
Trading revenues 1,920 943 5,047 8,023
Other revenues 62 649 1,719 979
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Net revenues 6,689 6,566 21,737 24,118
Provision for credit losses 84 -26 90 -56

Compensation and benefits 3,067 3,355 10,192 11,228
General and administrative expenses 2,209 1,752 5,493 5,488
Commission expenses 485 484 1,512 1,573
Total other operating expenses 2,694 2,236 7,005 7,061
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Total operating expenses 5,761 5,591 17,197 18,289

Continuing operations profit before taxes 844 1,001 4,450 5,885
Income tax expense 332 117 1,068 1,143
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Income from continuing operations 512 884 3,382 4,742
Discontinued operations, Profit net of tax 0 0 0 -19
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Net income 512 884 3,382 4,723
Attributable to noncontrolling interests -171 275 792 466
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Attributable to shareholders 683 609 2,590 4,257

Adjusted pre-tax income: continuing operations*
Wealth Management Clients -34 612 1,184 1,922
Corporate & Institutional Clients 217 224 697 680
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Private Banking 183 836 1,881 2,602
Investment Banking -190 395 1,384 2,973
Asset Management 92 135 466 323
Corporate Center 951 -613 16 -405
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Income from continuing ops. before taxes 1,036 753 3,747 5,493

*Adjusted basis in contrast to regulatory basis for income summary - totals do not match