Credit Suisse reported a 31% drop in net third-quarter income because of the continued effects of the sub-prime crisis.
Third-quarter income dropped $1,893 million in write downs and the bank cited the continued problems of the financial markets as a cause for the losses.
This quarter last year saw the investment banking division make $652 million but in 2007 it returned just $5.1 million operating earnings.
Residential mortgage-backed securities and structured products suffered $0.8 billion in write downs.
Income in private banking saw a 26%t increase in profits to $1.1 billion while the asset management division saw earnings drop by 85% to $38.7 million.
“We are seeing encouraging signs that activity in credit markets is increasing although it is too early to predict when all of the affected markets will return to more normal levels,” says Brady Dougan, chief executive, to the Guardian.