Credit Suisse Swings to Loss in Fourth Quarter -- Update
February 14 2017 - 2:28AM
Dow Jones News
By Brian Blackstone
ZURICH-- Credit Suisse Group AG swung to a wide loss last
quarter due to a hefty settlement the Swiss banking giant agreed to
pay to resolve crisis-era mortgage securities cases.
Zurich-based Credit Suisse said Tuesday that its net loss was
2.3 billion Swiss francs ($2.3 billion), versus expectations of a
2.04 billion franc loss according to a consensus of analyst
estimates compiled by the bank. During the same quarter of 2015,
Credit Suisse posted a heftier loss of 5.8 billion francs due to
restructuring costs associated with its pullback from investment
banking.
For 2016 as a whole, Credit Suisse posted a loss of 2.4 billion
francs.
In December, the bank reached a settlement worth roughly $5.3
billion with the U.S. Justice Department over toxic mortgage
securities sold before the financial crisis. This included a $2.5
billion penalty and consumer relief payments of $2.8 billion over
the next five years.
The fourth-quarter results included net litigation expenses of
2.2 billion francs, reflecting the settlement with U.S.
authorities. The agreement removes "a major source of uncertainty
for our future," Credit Suisse Chief Executive Tidjane Thiam said
in a statement.
Its revenue for the quarter was 5.4 billion francs, and totaled
21.6 billion francs for 2016, a 7% drop from the previous year.
Write to Brian Blackstone at brian.blackstone@wsj.com
(END) Dow Jones Newswires
February 14, 2017 02:13 ET (07:13 GMT)
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