The group, Europe’s ninth-largest bank, said that net profits hit 1.91 billion Swiss francs (£843 million) for the first three months of the year compared with forecasts of a Sfr1.6 billion result.

The improvement was credited to the group’s private banking unit, which manages money for wealthy clients, and which matched a strong performance achieved a year before. Net income rose to Sfr685 million.

"Private banking had another excellent quarter," Oswald Grubel, the Credit Suisse chief executive, said.

The group’s corporate and retail banking division achieved a 45 per cent rise to a record Sfr274 million in net profits, boosted by a cut in provisions.

However, the group’s institutional securities arm, the core investment banking unit, suffered a 13 per cent fall in profits, fuelled by declining revenues from share trading and debt underwriting.

"The results from institutional securities were mixed," Mr Grubel said.

The bank also warned that it expected to see "market activity slow considerably" in the current quarter.

"These less buoyant market conditions are likely to result in more subdued client activity, bringing with it a corresponding decrease in business volumes," the bank said.

Analysts were, nonetheless, relieved at a forecast of an improvement in market conditions in the last half of 2005.

Dirk Becker, the Kepler Equities analyst, said that the data "should provide some tailwind for our ’buy’ rating" on Credit Suisse stock.

At Helvea, Peter Thorne said: "Overall the figures look very good. The outlook is probably upbeat in comparison to UBS, given the prospect of happier times in the second half."

Credit Suisse shares rose by 1.1 per cent in Zurich trade.

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