Credit Suisse returns to profit

ZURICH, Switzerland (AP) -- Credit Suisse Group returned to profit from subprime losses in the second quarter, posting a net income Thursday of 1.22 billion Swiss francs ($1.16 billion).

Credit Suisse's second-quarter result was 33 percent lower than the net income of 3.2 billion francs in the same period last year. Switzerland's second largest bank, which has weathered the U.S. subprime mortgage crisis better than crosstown rival UBS AG, had gone into the red for the first quarter, posting a net loss of 2.1 billion Swiss francs.

The bank said it had combined net write-downs of 22 million francs ($21.3 million) in the leveraged finance and structured products businesses, which it said was so low as to be "immaterial." In the first quarter, Credit Suisse had net write-downs of 5.3 billion francs for big buyout loans and mortgage securities.

"We are pleased with our second-quarter results, which reflect the resilience and earnings power of our integrated business model and our continued focus on risk and cost management," said Chief Executive Brady W. Dougan.

He said the bank had further reduced its risk positions.

"Our conservative funding structure and our position as one of the world's best capitalized banks remain competitive advantages," Dougan said in a company statement