Credit Suisse's investment banking division returned to profit in the second quarter with a substantial reduction in writedowns and a 27% decline in its exposures to leverages loans, commercial mortgages and other risky assets.

Net writedowns were Sfr22m (€13.5m) in the second quarter, a fraction of the Sfr1.3bn analyst consensus estimate, as commercial mortgage backed securities writedowns of Sfr500m were offset by a Sfr500m gain on collateralised debt obligation positions.