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Credit Suisse posts 63% drop in Q3 profit - Novartis results weighed down by generics

October 25, 2012

Credit Suisse said it would target an extra CHF1 bn of cost savings by 2015 after Q3 net profit dropped 63% to CHF254 m (Bloomberg consensus: CHF415 m; investment bank: CHF508 m pretax profit, compared with a loss of CHF720 m a year ago, private banking: CHF689 m, +232%, asset management: CHF222 m, +129%; net new money inflow of CHF5.1 bn), hit by a CHF1.05 bn accounting charge from the bank’s own debt.

Novartis announced that sales declined 7% to $13.8 bn (expected: $14.2 bn) in Q3, dragged down by the loss of a US patent on its top-selling blood pressure drug Diovan and lower sales at its Sandoz unit. Earnings excluding some costs decreased 8% to $3.26 bn, or $1.34 a share (matching the consensus). The pharma giant maintained its 2012 guidance (net sales in line with 2011’s result).