LONDON-The Swiss bank Credit Suisse said on Thursday that earnings in the fourth quarter rose nearly 2 percent from the same period a year earlier after it had to set aside more funds to cover legal costs.
In the last three months of 2013, net income of 267 million Swiss francs, or $295 million, fell short of analysts’ expectations after provisions for ongoing mortgage litigation and a tax dispute in the United States added to a weak performance at the investment bank. A year earlier, net income was 263 million francs and revenue rose 9 percent in the quarter, to 6.2 billion francs.
Credit Suisse set aside 514 million francs in the fourth quarter to cover any legal costs relating to ongoing mortgage litigation and a tax dispute with regulators in the United States about private banking services to American clients, on which the bank said it was working toward a resolution.
“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,†Credit Suisse’s chief executive, Brady W. Dougan, said in the earnings report. “We made strong progress towards these objectives.â€
Mr. Dougan is aiming to cut 4.5 billion francs in annual costs by the end of 2015. He also plans to reduce risk-weighted assets at the investment banking unit and to increase its underlying return on equity, a measure of profitability, to more than 15 percent, from 10.1 percent in 2013. Mr. Dougan on Thursday reiterated this goal.
