Management of one of the largest financial concerns Credit Suisse published a report on quarterly profit that exceeded expectations of analysts. According to the official data, the company’s net profit grew 23% in the first quarter 2015 compared to the same period last year. Net revenue increased only 3%, while the bank’s capital cushion slightly dropped amid the recent sharp rise in value of the Swiss franc. Overall net profit rose to 1.05 billion Swiss francs (roughly $1.1 billion) in the quarter compared to 859 million francs in the previous year. Analysts had supposed growth to 970 million francs. However, shares of Credit Suisse fell almost 3% as some experts anticipated that the bank may need extra capital. The first-quarter results reflect the company’s activity during the period when it had to fight with an abruptly-strengthened franc after the Swiss National Bank decided to remove a cap on the currency. During a meeting with journalists, the creditor’s representatives said that the effect of the exchange rate fluctuations was “limited” also because of “proactive actions” taken by the bank. Nevertheless, experts are sure that the influence of the strong franc was much more considerable. First of all, key capital ratio decreased; and secondly, the bank is buying up its shares. Still, there is good news. It was reported that measures adopted to cut spending work. These measures have already enabled the financial giant to successfully offset consequences of the strong franc. Earlier, the bank announced its decision to reduce spending by 200 million francs.
