Credit Suisse Back in Black

Credit Suisse dismissed its 22 million Swiss francs, or $21.3 million, in writedowns as "immaterial." Its provision for credit losses skyrocketed 456% to 50 million Swiss francs from last year's 9 million, but down from the 2008 first quarter figure of 156 million.

Net revenues were 7,830 million Swiss francs, up 159% from the first quarter of 2008, but down 33% from the second quarter of 2007. There were many positive pieces of business to glean from the quarter such as a return to profitability for the investment banking segment and the asset management group. Private banking recorded net new assets of 17.4 billion Swiss francs, including net new assets of 15.4 billion Swiss francs in the wealth management business. Fixed income and equity trading declined for the second quarter.

Analysts had not received much guidance from Credit Suisse leaving many to speculate as to what the quarter would bring.

"While we think [Credit Suisse] has continued to avoid major writedowns from structured finance, it may have been exposed to basis risk on hedges, as well as could have run down its leveraged loan exposure, so the investment banking unit may still post a loss," Standard & Poor's Derek Chambers wrote. He reduced his price target by $6 to $48. "While this offers upside from current prices, we would not add to positions in view of current uncertainties."

Rival UBS has not fared as well with its share value plummeting 59.9% over the past 12months. UBS took on a heavy load of toxic bonds and has paid a severe penalty for it. It is expected to report its second quarter on Aug. 12 and analysts polled by Thomson Reuters expect a loss of $1.09 a share.