Credit Suisse Reports 75% Increase in Profits, Driven by Tax Benefits
Global wealth manager and investment bank Credit Suisse (NYSE: CS) delivered an impressive 75% increase in profits in the first quarter of the year. However, those profits were masked by some one-time tax benefits that made earnings look better than they actually were.
The bank reported roughly $1.3 billion in net income in the quarter, or roughly $0.53 per share. However, income before taxes is roughly $1.2 billion, only 13% higher than income before taxes in the first quarter of 2019. The bank had an effective tax rate of -9.2% this quarter, compared to 29.5% one year ago.
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Source Fool.com