Credit Suisse posts heavy loss


Zurich - Credit Suisse Tuesday posted a net second-quarter loss of 700 million Swiss francs (576 million euros, $778 million) as a multi-billion-euro US tax evasion fine sent it deep into the red.

The Swiss banking giant paid a $2.6 billion settlement to US authorities in May over tax evasion charges - helping thousands of wealthy Americans hide money in offshore accounts to avoid taxes.

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The sun is reflected at the logo of Swiss bank Credit Suisse at a branch office in Basel.

Its quarterly losses exceeded the forecasts of analysts who had expected them to reach 600 million Swiss francs.

Last year Credit Suisse posted a 1.04-billion-franc profit over the same period.

The US fine heavily impacted the giant's private banking and wealth management divisions, which racked up pre-tax losses of 749

million Swiss francs, the bank said in a statement.

This was offset by corporate banking activities which generated a pre-tax profit of 752 million Swiss francs, on a par with the same period last year but down nine percent since the first quarter. - Sapa-AFP

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