At the end of the 4th quarter of 2016, the Swiss bank – Credit Suisse Group (SIX: CSGN) AG recorded a loss due to litigation costs and penalties.
In October-December, the net loss of the bank amounted to 2.35 billion Swiss francs ($ 2.3 billion) compared with a loss of 5.83 billion francs in the same period of 2015, says the Credit Suisse report.
Analysts polled by the bank on average had forecast a loss of 2.04 billion francs.
The bank’s quarterly revenue jumped 23% to 5.18 billion francs due to higher income from investment banking and capital market operations.
The net loss for Credit Suisse for 2016 amounted to 2.45 billion francs against 2.94 billion in 2015, while revenues decreased by 7% to 21.6 billion francs.
In December, Credit Suisse has reached an agreement on out of court settlement of claims of the US authorities in connection with problematic mortgage-backed securities, in which the total payout will reach $ 5.3 billion, including fines to regulators - $ 2.5 billion.
The net legal expenses for the 4th quarter, reflecting the terms of the agreement with the US authorities, amounted to 2.2 billion francs.
Credit Suisse suffered a net outflow of capital in the last 3 months of 2016 in the amount of 6.7 billion francs, which was also related with the closure of one of the bank's joint ventures.
However, the bank gave an optimistic forecast for the first weeks of 2017, noting the restoration of customer activity in the trade area. Because of this, Credit Suisse shares rose 3.5% on Tuesday.
The bank announced a reduction of 1000 jobs this year in addition to the previously planned 5500, which will allow it to reduce spending to less than 18.5 billion francs at the end of 2017.
In addition, the capital adequacy ratio of Credit Suisse declined less than expected, amounting to 11.6% as of 31 December, taking into account all the requirements of "Basel III".