(by Ameli Berksman)

Lackluster financial market forced Credit Suisse to paint a subdued picture of its future performance. The bank delivered better-than expected results while the group third-quarter net income was SFr1.35billion, significantly ahead of the SFr 263 million in the same period last year, albeit down from SFr1.46 billion in the second quarter and SFr1.86billion at the beginning of the year.

The bank’s income was benefited by tax impacts since tax payments were at SFr114 million, almost half of the number a year ago and much lower than SFr 442million in the second quarter.

The investment banking unit, Credit Suisse First Boston , reported net profit of SFr322million which represents a rise from SFr203 million a year ago, but a 25% drop from the SFr430million in the previous quarter. The unit’s performance was marked by surging fixed-income trading and advisory business revenue against the background of lackluster revenues from equity trading, underwriting and private equity gains. Company’s executives cite reduced market activity, seasonal effects and subdued market sentiment as evidence for the “trendless” markets that affect trading profits. Declines in trading profits were also reported I this quarter by Credit Suisse’s competitors German bank HVB and French bank BNP Paribas.

Credit Suisse foresees a stagnant market for financial services over the next few quarters and plans to raise profits mostly through cost-cutting and increase in the market share.