Credit Suisse returns to profit

Credit Suisse saw its first loss in five years earlier in 2008

Swiss bank Credit Suisse returned to profit in the second quarter, helped by its private banking arm.

The firm reported profits of 1.2bn Swiss francs ($1.16bn; �580m) in the three months to 30 June, beating analysts' expectations.

The earnings mark a 62% fall on the year before but come after a 2.1bn Swiss franc loss in the first quarter - its first loss in five years.

The loss came after it wrote down the value of assets exposed to mortgages.

Gaining share

Credit Suisse, which is reducing its risk exposure, said growth from wealth management grew more than twice that forecast, reaching 15.4bn Swiss francs.

Dirk Becker, analyst at Landsbanki said: "Apparently, it was able to capitalise on the problems of its peer UBS and is winning market share in this highly attractive business."

Rival Swiss bank UBS was one of the banks worst hit by the US housing slowdown, and in particular problems in the sub-prime sector.

Credit Suisse said that volatile market conditions would continue.

But chief financial officer Renato Fassbind added: "At a time when many competitors are questioning their business models, our strategic direction is clear and consistent".

Shares in the bank rose more than 8% in early trade after the results were released.

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