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Credit Suisse net profit drops 24% in 2012 to $1.5 bn

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(Globalpost/GlobalPost)

Swiss banking giant Credit Suisse said Thursday its net profit fell 24 percent last year to 1.4 billion Swiss francs (1.2 billion euros, $1.5 billion) despite its investment bank unit rebounding into profit.

The result was below the 1.7 billion francs pencilled in by analysts surveyed by the Swiss financial news agency AWP.

In the final quarter of 2012, however, the bank posted a net profit of 397 million francs, compared to a loss of 637 million francs in the same period the previous year.

The private banking and wealth management division posted an operating profit of 3.7 billion francs for 2012, up from 2.9 billion the previous year.

The investment bank unit, which posted a loss of 593 billion francs in 2011, rebounded in 2012 with an operating profit of 2.0 billion francs.

"2012 was a year of transition," said chief executive Brady Dougan in a statement.

"We took significant steps to adapt our businesses and our organisation to new regulatory requirements, changing client demands and the current market environment," he added.

These measures should lead to an improvement in 2013, he said.

"Going into 2013, revenues have so far been consistent with the good starts we have seen to prior years, with profitability further benefitting from the strategic measures we took in 2012, including our strengthened capital position and our significantly reduced risks and cost base," said Dougan.

The bank's board recommended keeping the annual dividend unchanged at 0.75 francs per share.

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http://www.globalpost.com/dispatch/news/afp/130207/credit-suisse-net-profit-drops-24-2012-15-bn