Updated from 1:14 a.m. EDTSwiss banking giant Credit Suisse ( CS) reported second-quarter net income of 1.57 billion Swiss francs ($1.47 billion), up 29% from 1.22 billion Swiss francs a year earlier as profits rose substantially at its investment bank. Excluding certain charges and a tax benefit, Credit Suisse said it would have recorded net income of 2.5 billion francs. The bank, in a statement Thursday, reported return on equity of 17.5%; excluding items the return on equity would have been 27.4%. Its tier 1 ratio was 15.5%. Core revenue in the period was 8.61 billion francs compared with 7.74 billion francs in the same quarter of 2008. Credit Suisse said its investment banking division reported pretax income of 1.66 billion francs in the second quarter, up from 304 million francs. "Our strong second-quarter performance demonstrates that our client-focused, capital-efficient strategy is working very well and that our reduced-risk business model is providing the basis for more sustainable, high-quality, lower volatility earnings," said Brady Dougan, Credit Suisse CEO, in a statement. Profits in private banking fell 23% to 935 million francs, while wealth management saw a similar decline to 662 million francs before taxes. Credit Suisse said corporate and retail banking earnings fell 30% to 273 million francs before taxes. Assets under management dropped 11% to 1.093 billion francs from the same quarter last year. The results are the second consecutive profit for what is now Switzerland's largest bank by market capitalization. Having posted its worst loss in 153 years in 2008, Credit Suisse returned a net profit of 2 billion francs in the first quarter. Credit Suisse also once again trounced cross-town rival UBS ( UBS), which warned last month that it expects to post a loss in the second quarter.