The Swiss flag flies over the Credit Suisse sign in Bern, Switzerland
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Credit Suisse noted a net income of 24% and created additional reserves against the background of “difficult economic conditions.”
The Swiss bank has also announced several structural changes. This will include the creation of a global division of the investment bank and a savings program of about 400 million Swiss francs per year from 2022.
“The measures we are planning today are the right ones to further strengthen our integrated model, as a world leader in wealth management with powerful global investment banking capabilities,”; said CEO Thomas Gottstein.
It reported net income of 1.16 billion Swiss francs ($ 1.27 billion) in the second quarter of 2020, up 24% from the same period last year. According to the Refinitive, analysts expected a net profit of 838.9 million Swiss francs in the three months to the end of June.
At the end of the first quarter, the bank allocated 568 million Swiss francs to combat potential loan losses and said it had added another 296 million Swiss francs during the second quarter.
In a statement, the Swiss bank said that the reserve for its credit losses at the end of the first half of 2020 was 12 times higher than the average for the last 10 years for the same period.
The stock has fallen by about 27% since the beginning of the year.