Profits nosedive at Credit Suisse

Credit Suisse today reported a 62% slump in profits as it continued to feel the fallout from the credit crisis.

Switzerland's second biggest bank said net income in the second quarter fell from Swfr3.19 billion (£1.53 billion) to Swfr1.22 billion. That beat the Swfr617 million expected by analysts as the investment banking unit returned to profit.

Chief executive Brady Dougan said he was "pleased" with the results after he scaled back exposure to leveraged loans and property to limit writedowns relative to UBS, its larger rival which has felt the full force of the credit crisis.

"Dougan has been able to limit the ongoing deterioration of the business," said Guy de Blonay of New Star Asset Management. "Credit Suisse has been able to cut risky positions a bit faster than the average in the sector."