Derivatives sale lifts CS Holding
Tuesday 22 August 1995
CS Holding, one of the three Swiss banking giants and parent of Credit Suisse, reported a 3 per cent drop in underlying first-half net profit to Sfr 691m (pounds 373.5m).
This was in line with analysts' expectations and the bank said it was a "good result considering 1995's slow start".
First-half net profit showed a 2 per cent rise to Sfr749m thanks to the extraordinary gain from the sale of a 20 per cent stake in the derivatives business, CS Financial Products, to Swiss Re.
Sarah Manton, analyst with Smith New Court, said: "These are quite good results, with no real surprises. The 20 per cent gain in trading is perhaps disappointing given that Credit Suisse is the biggest Swiss trading house. They probably made some mistakes."
The increase in trading revenues to Sfr1.1bn largely helped to offset the 13 per cent drop in net commission income to Sfr1.7bn in the first half. Analysts were impressed by CS Holding's grip on costs, with a 1 per cent increase in staff costs and a significant 11 per cent fall in operating expenses. "They are being the most aggressive on costs of all the big banks reporting at the moment," Ms Manton said.
CS Holding said the return on equity fell to 8.7 per cent in the first half of 1995 from 8.8 per cent a year ago.
The tight control on overall costs was maintained despite restructuring charges in the US-based investment banking business, Credit Suisse First Boston. CS Holding management has come under increasing pressure, particularly in the light of recent consolidation in the global investment banking sector, to tackle the problems associated with its structure of relatively autonomous regional operations. There have been cases of competition between the commercial bank and the investment bank, and confused lines of communication.
Moves are afoot to co-ordinate CS and CSFB more closely, and also to work towards an integrated pan-European investment banking operation that would report to Zurich directly rather than via New York.
But CSFB starts with a big advantage over Continental rivals seeking global investment banking reach in that it is the only one with a significant presence in the key US market.
- 1 Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
- 2 The secret report that helps Israelis to hide facts
- 3 Danish TV reporter is all business up top, all party down below
- 4 Ross Burden dead: MasterChef and Ready Steady Cook star, dies aged 45
- 5 Businessman charged £75 for three small bottles of water in London hotel
Danish TV reporter is all business up top, all party down below
Israel-Gaza conflict: President Obama presses Netanyahu to call ‘immediate and unconditional’ Gaza ceasefire
Ross Burden dead: MasterChef and Ready Steady Cook star, dies aged 45
Zayn Malik on Israel-Gaza: One Direction singer bombarded with Twitter death threats after posting #FreePalestine
MH17 crash: Black boxes show plane suffered 'massive explosive decompression' following shrapnel hit
The secret report that helps Israelis to hide facts
A day in the life of Vladimir Putin: The dictator in his labyrinth
Were 'Poor Doors' added to mixed developments so wealthy residents don't have to go in alongside social housing tenants?
A new Russian revolution: The cracks are starting to appear in Putin’s Kremlin power bloc
Arizona execution lasts two hours as killer Joseph Wood left 'snorting and gasping' for air
Opponents of Israel's military operation in Gaza are the real enemies of Middle Eastern peace
iJobs Money & Business
Data Governance Manager (Solvency II) – Contract – Up to £450 daily rate, 6 month (may go Permanent)
£350 - £450 Per Day: Clearwater People Solutions Ltd: We are currently looking...
£500 - £560 per day: Orgtel: Java Developer FX - Banking - London - Up to £560...
£350 - £400 per day + competitive: Orgtel: My client, a leading bank, is curre...
£26000 - £30000 per annum + Benefits: Ashdown Group: Account Manager - (Produc...