Credit Suisse doubles net profit

CREDIT SUISSE more than doubled net profit in the second quarter as it grew its wealth management business, despite the weakness which has hit private banking rivals and as it reaped gains from the last stage of a three-year overhaul.

Global geopolitical uncertainty has dragged on wealth managers as rich clients shy away from potentially risky investments, but Credit Suisse was confident it can deliver gains in its main business line this year.

“The growth potential of our wealth management-related businesses of Switzerland, Asia Pacific and International Wealth Management remains intact and we expect them to continue to benefit from broad-based, clientled growth in the second half of 2018,” Credit Suisse said.

Switzerland’s second biggest bank said its net income attributable to shareholders from April through June rose 114 per cent year on year to 647 million Swiss francs (£498.75m), beating expectations as it further pared back costs and grew business banking.

It said it was on track to meet targets for 2018, the final year of a turnaround plan to focus on wealth management over investment banking.

UBS and Julius Baer, Credit Suisse’s largest listed Swiss rivals, were cautious over concerns that ongoing geopolitical tensions and escalating trade wars would continue hampering client activity.