Boston, MA 10/25/2013 (wallstreetpr) – Switzerland’s second largest bank, Credit Suisse Group AG (ADR) (NYSE:CS) today posted its 3Q13 financial results. The results show an unanticipated small increase in the third quarter profits mostly due to the weaker results of its investment banking unit.
The banking giant that showed thousands of employees exit door in cost cutting drives to enhance profits and revenues, posted a petite profit of 454 million Swiss francs or $509 million, up from 254 million Swiss francs of the previous year. Analysts had a bigger expectation of 671 million Swiss francs from the prevalent bank.
The weaker results negatively impacted the bank’s stock and it plunged about 3% to 28.95 francs in the morning trading on the Zurich exchange. According to Zurich based group, the net revenue of the investment banking segment dropped about 20% to 2.55 billion francs as compared to last year.
Amid the weaker profits in all the major segments, the bank managed to reflect a resilient profit in its wealth management and private banking segments. The figure is 3.32 billion francs for this year that shows a comparable result from the prior year.
Credit Suisse also reported that it has pruned around 46,400 employees from its global staff by the third quarter of this year, down 4% from 48,400 last year. Benefits and cost of compensation for its employees also fell down 24% to 348 million francs as the bank paid lesser bonuses this year.
The bank also did a cost cutting of 3 billion francs this year out of 4.4 billion francs that it had planned and posted that it would increase the figure to 4.5 billion francs.
Brady Dougan, Chief Executive Officer, commented on the results and said that the bank has seen a turmoil in the market conditions this year and the weaker results is due to low levels of client’s activities across several business segments of the company.
