Credit Suisse suffers loss despite cost cuts, selloffs

Credit Suisse posted a surprise fourth-quarter net loss as its investment bank struggled and it took almost 1 billion Swiss francs (Dh4.02 billion) of charges as it slashes costs and risky assets to meet stiffer capital rules. "Our performance for the fourth quarter 2011 was disappointing," said chief executive Brady Dougan. "It reflects both the adverse market conditions during the period and the impact of the measures we have taken to swiftly adapt our business to the evolving market and regulatory requirements." Credit Suisse shares, which had risen 14 per cent this year, were down 2.1 per cent to 24.71 francs by 0924 GMT, underperforming a 1 per cent firmer European banking sector. Article continues below The bank said the charge of 981 million francs was due to the accelerated implementation of a risk reduction plan, steps to exit unprofitable businesses and expenses due to the rapid execution of cost cutting programmes. "We were keen to get this done and clear the decks in terms of the trading for 2012," Credit Suisse financial chief David Mathers said. The charge pushed Credit Suisse into a quarterly net loss of 637 million francs — its first quarterly loss in three years — missing average analyst expectations for a profit of 430 million. Credit Suisse also proposed nearly halving its dividend to 0.75 Swiss francs per share, from 1.30 francs in 2010. Disappointing results