As a consequence of competition from the US, Credit Suisse Group AG reports a decrease in revenues and profits in the third quarter. In turn, Swiss stocks increased and outbalance Credit Suisse Group AG”s losses.  Today, the general Swiss Performance Index improved 0.5 percent.

Commenting on Credit Suisse and the general financial situation in Switzerland’s industry, Luzerner Kantonalbank AG trader, Benno Galliker, states: “Credit Suisse was clearly disappointing. On the other side the numbers from Novartis were encouraging but a lot was already in the price. Overall, there is a sense that quite a lot of investors are underinvested in this market and every setback is a chance to buy some shares.”

Reasons for Credit Suisse’s losses are low volume equities and clients behaving hesitantly. Nevertheless, the performance of fixed income is interpreted as better than assumed by analysts beforehand.

In Switzerland, compared to investment banking with a disappointing third-quarter result of a revenue decline from SFr8.42bn to SFr6.28bn, private banking has shown to be more profitable delivering very high net inflows of SFr12.4bn. Nevertheless, untaxed incomes have to face falling revenues of 6 % to SFr2.83bn.

Chief executive, Brady Dougan, comments on the results as “a solid result in a quarter characterized by challenging conditions with low market volumes and subdued client activity.”