Credit Suisse shares are higher Tuesday morning, after the Swiss bank reported better-than-expected second quarter profits. The company said net income was more than double that of a year ago.
However, looking ahead, the bank warned that geopolitical tensions, particularly around global trade, could prove harmful.
By 0850 BST, Credit Suisse shares were 1.23% higher at CHF15.98. The stock has been climbing broadly higher in recent months, as the bank’s restructure has been ongoing.
Credit Suisse Q2 earnings
Credit Suisse said Tuesday that its net income grew 114% to hit CHF647 million in Q2 2018. That was also above analysts’ expectations. Although, it was a little lower than the CHF694 million net income achieved in Q1.
The Swiss bank recorded a record high pre-tax income of CHF1.3 billion, some 88% higher than the same period in 2017.
“2Q18 was a period of continued strong performance as we achieved our highest adjusted pre-tax income in the last 12 quarters and our seventh consecutive quarter of year-on-year profit growth,” said CEO Tidjane Thiam.
Thiam added that the strong profit increase was “driven by strong revenue growth of 7%, and continued positive operating leverage supported by strict cost discipline.”
After reporting an upbeat Q2 performance, the outlook for Credit Suisse was also positive. Thiam said the Swiss bank will continue to focus on completing the bank’s restructure plan.
“For the remainder of 2018, we will continue to focus on growing our wealth management franchise and completing the last two quarters of our restructuring successfully. Looking to 2019 and beyond, we will continue to deliver improved profitability, higher returns and growing shareholder value,” he said.
However, Thiam added a note of caution to that view. He said that geopolitical tensions and monetary policy decisions could harm the positive outlook – in particular any disruption to global trade.
“That uncertainty has, over time, the potential to negatively affect confidence, which in turn could impact a wide range of asset classes and activities, relevant for our more market-dependent activities,” the bank said.