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Credit Suisse had a healthier capital ratio than analysts expected at the end of the year after losing less money than feared in the fourth quarter.
The Swiss bank, whose capital levels have been under intense scrutiny, reported a common equity tier one ratio of 11.6 per cent. Analysts expected 1.1 per cent.
Pre-tax losses were SFr1.903bn in the final quarter, pushing the bank to a full year loss of SFr1.966bn. Analysts feared a fourth quarter loss of just over Sfr2bn, and full year loss of SFr2.1bn.
“2016 was the first full year of implementing our new strategy and it was a challenging and busy 12 months,” said chief executive Tidjane Thiam, referencing the turnaround plan he launched in October 2015.
“Our teams have worked hard and made good progress during a challenging year: they achieved a positive finish to the year. Many of the positive trends that we observed in 4Q16 have continued into January 2017.”
Investment banking and capital markets had a particularly strong quarter, with pretax profits of SFr149m against the SFr22m expected. Global markets’ pretax profits for the fourth quarter were just SFr5m, against the SFr43m expected. Asia Pacific’s outturn of SFr103m was around 50 per cent below expectation, while Credit Suisse’s Swiss bank, which is set to be IPO’d later this year, came in almost exactly inline with forecasts with quarterly pretax profits of SFr382m.