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Updated from 1:11 a.m. EDT

ZURICH, Switzerland (

TheStreet

) --

Credit Suisse

(CS) - Get Credit Suisse Group AG Report

exceeded analysts' expectations as it swung to a third-quarter profit of 2.4 billion Swiss francs ($2.38 billion) from a year-earlier loss of 1.26 billion francs.

The Swiss bank, in a statement Thursday, said third-quarter return on equity was 25.1% and its tier 1 ratio was 16.4%.

The bank's private banking operations reported pretax income of 867 million francs in the third quarter, down 7% from the second quarter. Net revenue fell 4% on lower net interest income, while costs remained stable, the bank said.

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Its private banking division took in net new assets of 13.1 billion francs in the quarter.

Investment banking reported pretax income of 1.7 billion francs in the third quarter, up 5% from the second quarter.

"Our third-quarter performance, including our strong return on equity of 25.1%, shows that our approach continues to work well and is providing the foundation for sustainable, high-quality, lower volatility earnings," said CEO Brady Dougan, in a statement. "Our strategy and business model and industry-leadingcapital strength, demonstrated by our tier 1 ratio of 16.4%, position Credit Suisse to prosper in the new competitive landscape."

-- Reported by Joseph Woelfel in New York

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