Credit Suisse Swings to Profit and Plans Deeper Cost Cuts
Credit Suisse posted quarterly profits that missed analysts' forecasts but told investors it does not expect to pay any further fines for its role in the global libor fixing scandal.
Switzerland's second-biggest bank said net income for the three months ending in December rose to 397m Swiss francs (£278m/$436m) from a loss of 637m Swiss francs over the same period last year, the bank said in a statement published on its website. A poll of analysts conducted by Thomson Reuters suggested the figure would be 645m Swiss francs. The bulk of profits came from the group's investment banking operations, which netted a bottom line of 298m Swiss francs, compared to a 1.43bn Swiss franc loss last year. Inflows to the group's private banking until for the period hit 6.8bn Swiss francs
"2012 was a year of transition. We took significant steps to adapt our businesses and our organization to new regulatory requirements, changing client demands and the current market environment," said CEO Brady Dougan in the statement. "Our clients appreciate the swift and decisive action that we took to adapt our organization to the new regulatory requirements and view us as a strong and reliable partner."
The bank told investors that it while it can't give an estimate on the timing or result of its dispute with US authorities over allegations of tax evasion, it did not expect to have any "material" issues with respect to libor litigation. Credit Suisse said it was cooperating with investigators but planned to "vigorously" defend itself against a "factually and legally meritless" civil lawsuit.
The group's balance sheet was trimmed by around 99bn Swiss francs during the quarter to 924nb Swiss francs, Credit Suisse said. A further 24bn Swiss francs will be shifted this year. The bank also said it would increase the pace of its cost-cutting programme by 400m Swiss francs and targeted 4.4bn Swiss francs in reductions by the end of 2015.
Credit Suisse shares closed at 27 Swiss francs each in Zurich Wednesday after a 0.9 percent rise on the session.
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