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Credit Suisse Q4 almost flat, misses forecasts

  • 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)

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