Credit Suisse Posts Upbeat Q3 Profit

Credit Suisse Group AG (NYSE: CS) reported a strong rise in its third-quarter profit.Credit Suisse's quarterly profit jumped to 1.03 billion Swiss francs ($1.07 billion).Its net revenue climbed 20% to 6.54 billion francs. However, analysts were estimating a profit of 810 million Swiss francs on net revenue of 6.17 billion francs.Its strategic unit within Private Banking & Wealth Management posted flat net revenue at 2.94 billion francs, while pretax profit gained 8% to 872 million francs. However, nonstrategic unit's net revenue dropped 51%, while pretax profit fell 66% to 71 million francs.Credit Suisse's new assets dropped 8.6% to 7.4 billion francs, from 8.1 billion francs at the end of the year-ago quarter.Investment Banking posted income before taxes of CHF 516 million on net revenue of CHF 3,303 million. Its strategic unit within the investment bank posted a 50% surge in fixed income sales and trading revenue to 1.55 billion francs. Equity sales and trading revenue declined 2%, while equity underwriting revenue gained 28%. In the nonstrategic unit of the investment bank, net revenue dropped 41%.Brady W. Dougan, Chief Executive Officer, said: “We delivered a good performance, with our strategic businesses generating returns on equity of 11% for the quarter and 13% for the first nine months of this year. During the quarter, our momentum with clients across both divisions remained strong.”Credit Suisse shares fell 0.99% to close at $26.01 yesterday.