Brady Dougan, Credit Suisse CEO

Zurich, Switzerland (GenevaLunch) – Credit Suisse has moved into the number one bank slot in Switzerland, overtaking UBS in terms of capitalization, with strong first quarter results published 23 April. The bank’s return on equity for shareholders was up 22.6 percent. Net income was CHF2 million during the first quarter, compared to a loss of CHF2.15 m during the same period in 2008.

The bank had total net new assets of CHF11 billion, double the amount that analysts interviewed by Bloomberg two days ago had estimated, although the bank’s net income was lower than they predicted. The bank notes that investment banking unit “returned to significant profitability with pre-tax income of CHF 2.4 billion.” It describes its wealth management business as “positioned well for success in a changing industry landscape.” Wealth management net revenue was CHF1.9 m, down 17 percent from the same period in 2008. The bank attributes the weaker business to lower revenues due to a “decline in average assets under management, and cautious client behavior.”

CEO Brady Dougan remarked that “We believe that these results, in particular our strong return on equity, show that our differentiated strategy and our robust, integrated and capital-efficient business model with a low risk profile can be a powerful generator of earnings. The results also show the benefit of the measures we took last year across the bank, including cost reductions and the further strengthening of our capital position.”

The bank’s results come a week after UBS told investors it is likely to have a first quarter loss of CHF2 billion, attributable to shareholders. UBS has been hit harder by the US sub-prime mortgage crisis, writing down $50 billion, compared to $15b for Credit Suisse. UBS releases its Q1 figures 5 May 2009.

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