Credit Suisse, one of the market leaders for structured products in Switzerland and the US, has reported gains of $4m for debit valuation adjustments (DVA) on structured notes, according to the bank’s results for the second quarter of 2014.

Revenues were lower than 1Q14, primarily driven by weak client activity in the equity derivatives business, the bank said.

Underwriting and advisory results were higher compared with2Q13 and 1Q14, reflecting significantly higher equity underwriting revenues, as origination remained robust, according to the Swiss bank.

The bank’s Q2 2014 results also included fair value losses on own debt of CHF 29m ($32m), fair value gains on stand-alone derivatives of CHF15m ($16.6m) and debit valuation adjustment gains on certain structured notes liabilities of CHF4m ($4.4m), resulting in overall fair value losses on own credit spreads of CHF10m ($11m) in the second 2014 quarter.

This compares to a loss before taxes of CHF131m ($144.7) in 2Q13 and a loss before taxes of CHF439m ($484m) in the first 2014 quarter.

Market share
Credit Suisse currently has a market share of 15% in Switzerland, making it the second biggest provider of structured products behind market leader Vontobel (29%), according to SRP data.

The bank sold 430 structured certificates in its domestic market during the first six months of 2014, which carry a combined sales volume of CHF1.6bn ($1.8bn).

Meanwhile, in the US, the Swiss bank is currently third in the rankings with a share of the market of 11%, behind JPMorgan and Barclays who had a market share of 15% and 12%, respectively.

Credit Suisse sold 317 registered notes during the first two quarters of 2014 with sales of $2.5bn, including the best-selling Market Linked Step-Up Notes, which was linked to the Eurostoxx50 and which sold €260m during the subscription period.

Overall results
“Our reported results for the second quarter and the first half of 2014 were impacted by the resolution of our most significant legacy litigation issue,” Brady W. Dougan, chief executive officer of Credit Suisse, said.

“We generated strong net new assets of CHF11.8bn in the second quarter from our strategic businesses, driven by growth in Asia Pacific and Switzerland – two of our key markets,” Dougan added. According to Dougan this strong growth more than offset outflows from Credit Suisse’s Western European cross border business, where the bank is taking proactive steps to regularize its asset base.

Results were presented net of associated hedging activities and net of CVA and FVA amounts allocated to fixed income markets and equity markets.

Click here to read the Credit Suisse Chase financial results Q2 2014. Click here to read the Credit Suisse Chase earnings release financial supplement Q2 2014

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