Swiss banking group Credit Suisse has recorded a 31% drop in net profit for the third quarter due to the fall-out from the sub-prime mortgage crisis in the US.
Switzerland's second largest bank said net profit had been slashed to €775.5m.
'The extreme market conditions that characterised the third quarter affected many of our businesses,' said the group's CEO Brady Dougan. The drop in net profit was in line with a warning issued by the group last month.
Switzerland's largest bank, UBS, on Tuesday reported its first quarterly loss in five years, also blaming the deterioration in the US sub-prime mortgage market for its woes.
Credit Suisse had voiced caution in August about the potential impact on its second half results of the US sub-prime crisis. In September, the group announced it was shedding 150 jobs, mainly in London and New York.
Mr Dougan said there were 'encouraging signs' that activity in the credit markets was increasing, although it was too early to predict when markets would return to more normal levels.
