Credit Suisse’s aim of adding SFr800 million (around $900 million) to its wealth management arm’s pre-tax profits by 2014 is achievable so long as markets are favourable, analysts at Mediobanca predicted, while they cast some doubt on whether the bank will make speedy progress in cutting risk exposures and costs.

The Zurich-listed bank this week said its private banking arm – comprising global wealth management and Swiss corporate and institutional clients – logged pre-tax income of SFr183 million (around $207. 4 million) in the third quarter, down 78 per cent from SFr836 million a year ago, affected by one-off litigation costs. The pre-tax income figures for the latest three-month period included litigation provisions of SFr295 million linked to US tax issues and SFr183 million connected to a German tax issue. The firm also announced further job cuts to achieve an additional SFr800 million of cost cuts by the end of 2013.

In assessing the figures, Mediobanca said Credit Suisse had attempted to “steal the thunder” of UBS, its principal rival, as the latter firm is going to elaborate on how it is to reshape its business on 17 November.

Mediobanca said it has reduced its adjusted earnings per share estimates for 2011 to SFr2.35 per share, and cut its 2012 EPS forecast to SFr3.32 per share. On an adjusted basis, the forecast price-earnings ratio of Credit Suisse is not is 9.93 times earnings for this year and 6.72 times 2012 forecast earnings. Mediobanca said it is maintaining a neutral rating on Credit Suisse’s stock.

One of the key features of Credit Suisse’s figures, Mediobanca said, was its intended cut in risk-weighted assets, reducing investment banking’s share of RWA to 60 per cent by 2014 from the current 72 per cent.