CS Credit Suisse Group

(Adds additional CEO comments, earnings details, background)

--Credit Suisse's first-quarter net profit rose 8% on year to CHF749 million, beating forecasts

--The bank's global markets and its international wealth-management divisions also beat expectations

 
   By Pietro Lombardi 
 

Credit Suisse Group AG (CSGN.EB) kicked off the earnings season for big European banks reporting an increase in first-quarter net profit that beat expectations.

The better-than-expected results follow the bank posting for 2018 its first annual profit since 2014 following the completion of a three-year restructuring plan. The overhaul streamlined the investment-banking division and boosted its wealth-management business.

The bank is reaping the benefits of the restructuring, Chief Executive Tidjane Thiam said.

"We are now operating with a lower risk profile, a stronger capital base and a structurally lower cost base," he said.

Net profit for the period was 749 million Swiss francs ($735 million) compared with CHF694 million a year earlier, the Swiss bank said Wednesday.

Revenue fell to CHF5.39 billion from CHF5.64 billion.

Both revenue and net profit beat analysts' expectations of a net profit of CHF682 million on revenue of CHF5.20 billion, according to a consensus forecast provided by the bank.

The CEO described the quarter as challenging.

"The first quarter was one of three very distinct months: a challenging January, a limited recovery in February followed by a strong March," he said.

The bank's global markets and its international wealth-management divisions delivered results above expectations.

In the international wealth-management unit, pretax profit rose 8% on year to CHF523 million compared with expectations of CHF435 million.

"Our wealth-management franchise has proven resilient during a difficult quarter," Mr. Thiam said.

In global markets, pretax profit of CHF282 million significantly exceed expectations of CHF171 million.

"The positive momentum we observed towards the end of the first quarter has broadly continued into April," the bank said. However, "it is still too early in the quarter to draw definitive conclusions about our performance for the rest of 2019," it said.

Write to Pietro Lombardi at pietro.lombardi@dowjones.com

(END) Dow Jones Newswires

April 24, 2019 02:23 ET (06:23 GMT)

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