Thursday, October 25, 2012

Earnings Review: Credit Suisse Group AG (NYSE:CS), Aetna Inc. (NYSE:AET)

Swiss bank Credit Suisse, reported a 63 percent fall in net profit in the third quarter and said that it would accelerate its cost-cutting exercise but did not provide any details about its plans to cut jobs.

The country’s second largest bank, which has already announced 3,500 job cuts, did not say how many more jobs are on the line, though there are rumours that it will soon reduce its workforce further.

The bank had said earlier that it would save $1.07 billion in costs in 2014 and 2015.

The bank reported net profit of 254 million Swiss francs ($272 million) between July and September, compared with 683 million francs ($785 million) in the comparable period of 2011.

The bank attributed the decline to a pre-tax charge of 1.05 billion francs ($1.12 billion) linked to an accounting rule on how banks must value their debt.

Shares in Credit Suisse rose 0.40 percent to $22.71.

Health insurer Aetna Inc.(NYSE:AET) reported a 2 percent rise in earnings in the third quarter on lower health care use and revenue gains.

Aetna earned $499.2 million, or $1.47 per share, in the three months that ended Sept. 30. That's up from $490.4 million, or $1.30 per share, in last year's quarter.

Adjusted earnings totalled $1.55 per share topping the average analyst forecast of $1.33 per share.

Total revenue climbed 5 percent to $8.92 billion. Analysts expected $8.83 billion.

Aetna's health care premiums rose 7 percent to $7.25 billion in the quarter, and cost cutting helped its performance as operating expenses fell 10 percent.

Shares of AET rose 0.80% to $44.30.

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