Deutsche, CSFB post strong profits
THE City jobs market got a boost today as two of the financial sector's big employers posted strong first-quarter profits.
A surge in bond trading and investment banking revenues in the US saw Deutsche Bank report its biggest three-monthly profit in three years, e941m (£656m) against a loss of e219m for the same period in 2003.
There was also good news at Credit Suisse First Boston as its first-quarter net profits more than tripled to Swfr750m (£327m) from Swfr221m last year. That also was largely due to strong revenue growth.
Deutsche has shed a quarter of its staff and sold more than e12bn of assets to boost profits.
Chief executive Josef Ackermann, now on trial in the Mannesmann case concerning executive payouts following the Vodafone takeover, is credited with the turnaround.
CSFB head, and co-chief executive of parent Credit Suisse, John Mack, spoke in Feburary of rehiring, particularly in equities, if growth continued. CSFB turned a Swfr1.12bn (£524m) profit in 2003 after losses of Swfr1.5bn in 2002.
Today's results, and a surge in private banking net earnings at Credit Suisse Financial Services - to Swfr1.1bn from Swfr666m a year ago - pushed parent Credit Suisse to Swfr1.8bn of first-quarter profits, well ahead of analysts' forecasts.
