Absence of Legal Costs Allowed Credit Suisse Group AG (CS) To Return To Profit
Credit Suisse Group AG (ADR) (NYSE:CS) said that it returned to profit in the fourth quarter compared to a loss it suffered in the previous year quarter due to legal expenses. In the preceding year, it faced issues relating to mortgage finance ahead of the financial crisis in 2008.
The CEO of Credit Suisse Group AG (ADR) (NYSE:CS), Brady Dougan, said that its results reflected consistency in its performance, despite a challenging market environment amidst higher volatility. He also said that its strategic businesses delivered 11% return on equity in the fourth quarter and 12% for the whole of the year. The company also slashed its leverage exposure in the December quarter and continued to implement its capital measures. As a result, it surpassed its 10% look-through CET1 target.
Fourth Quarter Results
The company reported a net income of 921 million Swiss Francs compared to a loss of 476 million Swiss Francs in the year-ago quarter. This surpassed analysts’ predictions.
Credit Suisse Group AG (ADR) (NYSE:CS) said that it generated 6.4 billion Swiss Francs net revenues in the December quarter, up 8% from 5.9 billion Swiss Francs in the previous year quarter. It delivered pre-tax income of 1.01 billion Swiss Francs from private banking and wealth management. Similarly, its investment banking segment generated a pretax income of 579 million Swiss Francs. Both of these results reflected the strength of its diversified franchise.
The company indicated that its provision for credit losses grew to 56 million Swiss Francs from 32 million Swiss Francs in the 2013-fourth quarter and 53 million Swiss Francs in the third quarter.
Full Year Results
Credit Suisse’s net income slipped 10% to 2.1 billion Swiss Francs from 2.33 billion in 2013. Its net revenues for the year 2014 advanced 2% to 25.82 billion Swiss Francs from 25.22 billion in the previous year.
Credit Suisse Group AG (ADR) (NYSE:CS) had indicated that it would take steps to offset the lower interest rate impact in the current year. The local currency is also gaining strength following the termination of measures that helped to hold the value down compared to the Euro.
Full Release: here
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