Lawsuits cut into Credit Suisse Q4 profits
Shares in Credit Suisse fell in early morning trading on Thursday as Switzerland’s second largest bank posted results for the fourth quarter of 2013 that fell below forecasts.
The bank, suffering from litigation issues related to US tax evasion cases and the American mortgage market, posted a net profit of 267 million francs ($296 million) in the year’s final quarter, just marginally ahead of the 263-million-franc figure recorded in the same period a year earlier.
It wrote off more than 500 million francs in provisions for legal cases.
Net profit for 2013 more than doubled to over three billion francs from the previous year (1.34 billion francs).
Analysts polled by the AWP financial news service had expected to see the company pull in a net profit of 3.2 billion during the year, AFP reported.
The bank said it had made "significant progress" in changing its business, including a focus on "high returning" private banking and wealth management.
"In 2013, our priorities were to further improve profitability, continue to strengthen our capital position and reduce risks and leverage exposure, while expanding market share in targeted markets," Amerrican expat CEO Brady Dougan said in a statement.
"We made strong progress towards these objectives . . ."
The board is recommending a 70-cent cash dividend per share, down from 75 cents in 2012.
The bank said it was "working toward a resolution" of its litigation issues.