Credit Suisse Q4 almost flat, misses forecasts

|About: Credit Suisse Group AG (CS)|By:, SA News Editor

Credit Suisse (CS) Q4 net profit edged up to 267M Swiss francs ($296M) from 263M francs a year earlier, but came in well below consensus of 448M francs.

Earnings were kept down by provisions of 339M francs over mortgage litigation at its investment bank and 175M francs for a U.S. investigation into offshore accounts in Switzerland.

Core pretax income +11% to 1.32B, return on equity 9%.

Credit Suisse has also set aside $6B of assets on its balance sheet to protect it against future litigation and other matters, as required by Swiss financial regulator Finma.

Private banking pretax profit 870M francs vs 911M francs a year earlier, due to the provision for the tax probe. Net new assets dropped to 4.4B francs from 6.8B francs and missed forecasts of 5.27B francs.

Investment bank pretax loss of 40M francs vs a profit of 298M francs, hurt by a 525M franc loss from transferring undesired activities into a bad bank

Credit Suisse will pay a cash dividend of 0.70 franc a share.

Shares -1.6% in Zurich. (PR)