Three-and-a-half years ago, Tidjane Thiam said it would take three years to turn the increasingly stinky, rotting and oozing wheel of Gruyere that was Credit Suisse into some tasty fondue that shareholders might actually wish to eat. And, like the miracle that is melted dipping cheese sauce, he delivered on time: Credit Suisse is once again profitable, in spite of MDs who put their tongues on things other than cheese-drench cubes of bread. Unfortunately, it’s still rather an acquired taste that few are particularly impressed with.

Credit Suisse posted weak trading results. With a pretax loss of 193 million francs for the quarter, its global markets business missed expectations. Revenue in the unit also missed expectations…. Revenue performance is still far from the target, the CEO said, and the bank is working to improve it.

But while Chef Thiam may be open to shaving off some of the moldier bits before tossing them into the caquelon, but that slightly off-putting, unctuous flavor of underwhelming trading isn’t going anywhere.

At Credit Suisse, the promise of a bright future is tainted by its still struggling equity and bond trading operations.

The Swiss bank is adamant there will be no more cuts to trading. It fears becoming too small to do everything in capital markets that its ultrarich customers might want. For investors, however, its trading businesses look like a costly support function for the rest of its profits.

Credit Suisse Returns to Profit but Trading Weakness Remains [WSJ]
Credit Suisse Has Rich People’s Problems in Markets [WSJ]

Related

By World Economic Forum from Cologny, Switzerland [CC BY-SA 2.0], via Wikimedia Commons

Is Anyone At Credit Suisse Not Under Surveillance?

A bit of extra vigilance might be in order, and will probably be enough to catch the hapless rent-a-cops in Tidjane Thiam’s employ.

By World Economic Forum from Cologny, Switzerland [CC BY-SA 2.0], via Wikimedia Commons

Tidjane Thiam Not Swiss Enough To Fix Credit Suisse

There’s something about him that just makes Swiss people uncomfortable, not that we have any idea what….

By World Economic Forum from Cologny, Switzerland [CC BY-SA 2.0], via Wikimedia Commons

Credit Suisse CEO Definitely Had No Idea His No. 2 Was Tailing His Turncoat Former Protégé, No Sir

Surprise! Tidjane Thiam’s been cleared by his bank’s probe into some Big Lebowski-esque private investigating.

By World Economic Forum from Cologny, Switzerland [CC BY-SA 2.0], via Wikimedia Commons

Actually, Credit Suisse’s No. 2 Ran A Whole CIA-Sized Spying Operation, But His Boss Still Had No Idea

The bank misspoke when it said the surveillance was isolated, but on that point only.