A Swiss flag flies over a sign of Credit Suisse in Bern, Switzerland
FABRICE COFFRINI | AFP | Getty Images
Credit Suisse posted Thursday a 24% increase in net income and made additional provisions amid a “challenging economic environment.”
The Swiss bank also announced several structural changes. This will include the setting up of a global investment bank unit and a savings program of about 400 million Swiss francs per year, from 2022 onward.
“The measures we outline today are the right ones to further strengthen our integrated model, being a global leader in wealth management with strong global investment banking capabilities,” Thomas Gottstein, the chief executive officer, said in a statement.
It reported net income of 1.16 billion Swiss francs ($1.27 billion) in the second quarter of 2020, up 24% for the same period last year. Analysts had expected net profit of 838.9 million Swiss francs for the three-month period through to the end of June, according to Refinitiv.
At the end of the first quarter, the bank had set aside 568 million Swiss francs to deal with potential loan losses and said it had added another 296 million Swiss francs during the second quarter.
In a statement, the Swiss bank said its credit losses’ provision at the end of the first half of 2020 were 12 times higher than the average of the last 10 years in the same period.
The stock is down about 27% since the start of the year.