{"id":3719,"date":"2009-04-24T09:58:34","date_gmt":"2009-04-24T07:58:34","guid":{"rendered":"http:\/\/www.taxresearch.org.uk\/Blog\/?p=3719"},"modified":"2009-04-24T09:58:34","modified_gmt":"2009-04-24T07:58:34","slug":"credit-suisse-returns-to-profit","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2009\/04\/24\/credit-suisse-returns-to-profit\/","title":{"rendered":"Credit Suisse returns to profit"},"content":{"rendered":"<p>The <a href=\"http:\/\/www.ft.com\/cms\/s\/0\/df4893c6-2fcd-11de-a2f8-00144feabdc0.html\">FT<\/a> notes:<\/p>\n<blockquote><p><strong><a href=\"http:\/\/markets.ft.com\/tearsheets\/performance.asp?s=ch:CSGN\">Credit Suisse<\/a><\/strong> surprised investors on Thursday with a sharp move into profit in the first quarter as investment banking restructuring began to bite and private banking earnings remained robust.<\/p><\/blockquote>\n<p>But profit is not waht itn used to be. Under IFRS profit is the change in the net worth of your balance sheet on a mark to market basis: it is not the result of your trading in the quarter.<\/p>\n<p>So if you made incredibly harsh provisions (and most banks did) and then some of the provided for assets perform again you make a profit as a correction to the previous provision.<\/p>\n<p>Under historic cost you wouldn't.<\/p>\n<p>But when most people don't appreciate that this looks like a real profit.<\/p>\n<p>I doubt it is. This is part of a false bounce as the value of taxpayer's funds injected into the market is capitalised. The pro-cyclical reporting cycle has begun again.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The FT notes: Credit Suisse surprised investors on Thursday with a sharp move into profit in the first quarter as investment banking restructuring began to<br \/><a class=\"moretag\" href=\"https:\/\/www.taxresearch.org.uk\/Blog\/2009\/04\/24\/credit-suisse-returns-to-profit\/\"><em> Read the full article&#8230;<\/em><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26,70,66],"tags":[],"class_list":["post-3719","post","type-post","status-publish","format-standard","hentry","category-accounting","category-banking","category-iasb"],"_links":{"self":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/3719","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/comments?post=3719"}],"version-history":[{"count":0,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/3719\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/media?parent=3719"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/categories?post=3719"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/tags?post=3719"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}