Swiss banking giant Credit Suisse today said it made 609 million francs (€452m) in the third quarter, down 74% from a year ago.

Switzerland's biggest bank's earnings were hit by fair value charges amounting to 589 million on its long-term debt due to tightening credit spreads and cross currency swap.

It also revealed that litigation charges cost it another 73 million francs, but that it booked a positive benefit of 43 million francs over Britain's levy on bonuses

Overall, the quarter was characterised by 'challenging conditions with low market volumes and subdued client activity' but all divisions returned profits, the bank said in its earnings statement.

'Continued disciplined investments position Credit Suisse well for market recovery,' it added.

Brady Dougan, chief executive officer of the bank, said it was 'well placed' to meet new banking regulations, which require banks to set aside a significantly higher proportion of capital than previously.

'We anticipated much of the regulatory change, both in terms of capital requirements and the new cross-border regime. This means that we are well placed to meet these new requirements,' he said.