/Dow Jones Newswires: Credit Suisse profit soars and beats expectations

Dow Jones Newswires: Credit Suisse profit soars and beats expectations


Editor’s note: A previous version of this report misstated analysts’ expectations for revenue in the fifth paragraph.

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The logo of Swiss banking giant Credit Suisse is seen on October 17, 2017 in Zurich.

Credit Suisse Group AG (CS) said Wednesday that third-quarter net profit more than doubled, beating expectations, with performance strong in most divisions.

The results come as the Swiss bank

CSGN, -0.04%

CS, +0.16%

  tries to move on from a spy scandal related to the surveillance of the bank’s former wealth-management chief, Iqbal Khan. The scandal led to the resignation of the bank’s operating chief, a close deputy of Chief Executive Tidjane Thiam, who was cleared by a probe ordered by Credit Suisse.

Net profit for the period rose to 881 million Swiss francs ($885.7 million) from CHF424 million a year earlier, the bank.

Revenue grew 9% to CHF5.33 billion.

Analysts had expected the bank to report net profit of CHF770 million on revenue of CHF5.21 billion, according to a consensus forecast provided by the bank.

The bank’s key international wealth management division posted a 43% increase in pretax profit, while earnings at its domestic bank grew 19%.

The bank’s global markets division swung to a CHF269 million pretax profit, from a loss of CHF96 million.

“During the third quarter of 2019, we continued to implement our strategy of being a leading wealth manager with strong investment banking capabilities,” Chief Executive Tidjane Thiam said.

Looking ahead, the bank said it expects a seasonal slowdown in the final quarter of the year, due to the holiday season. Lingering headwinds related to Brexit and trade tensions between China and the U.S. may lead investors to be more cautious, it said.

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