Credit Suisse's investment arm raked in a one-third increase in the latest quarterly profit, causing investors to worry about the company's position if plans for interest rates increase would be pursued.

The Sweden-based bank benefited from improved trading in bonds and stocks in the latest quarter, more than doubling the company's profit before the establishment of its tax investment unit.

Investors' predictions of a raise in interest rates for 2014 shook financial markets and discouraged the bank's customers off issuing debt around June and early July.

Increased interest rates would eventual improve profit margins, specifically at its other unit, the private bank which has been affected negatively by past issues regarding Swiss bank secrecy, shared Credit Suisse CEO Brady Dougan. The private bank would gain more on loans and deposits as a result of increased interest rates.

Investors remained concerned that the higher rates will have a negative impact on the bank's bond trading before they assist the private bank.
Credit Suisse shares dropped more than 3% when the company remained unsuccessful in convincing investors of the markets' apparent stabilisation. 

"Rising long-term rates will hit Credit Suisse where it has traditionally been strong, such as in high-yield bond trading or leveraged finance," commented Mediobanca analyst Chris Wheeler.