Credit Suisse posts steep Q1 profit drop

Switzerland's second-biggest bank said its net profit attributable to shareholders during the first three months fell to 44 million Swiss francs ($48.19 million), way down on its net profit of 1.14 billion francs in the comparable period a year ago. However, the result represents a turnaround from the fourth quarter of 2011 when it posted its first loss since 2008, as it reduced its exposure to potentially-risky investment banking at a time when Europe's economy was facing acute problems related to a raging debt crisis. The first quarter result also beat average analyst predictions for a net loss attributable to shareholders of 391 million Swiss francs ($428.3 million) due to significant writedowns, restructuring costs and bonus programs.

The Zurich-based bank attributed the reduced profits to writedowns of 1.6 billion francs ($1.75 billion) related to the rising cost of its own debt, and 534 million francs in bonds-related costs from derivatives handed out as part of 2011 bonuses for more than 5,500 bankers.