The renowned bank of Switzerland, Credit Suisse Group AG (ADR) (NYSE:CS) recently announced its fourth quarter earnings results that evidently missed the analysts’ estimates. And for that matter the lender was forced to cut short its cost for a third time in nearly seven months.
For the fourth quarter company posted net income of 397 million francs however on average the analysts expected it to be nearly 647.6 million francs. In prior year company had bear a considerable loss as well. In a recent television appearance Brady Dougan, Credit Suisse’s chief executive officer, disclosed the measures taken by the bank put it in a position to prosper irrespective of market conditions.
By the end of 2015 company intends to seek additional 400 million francs as it expands its cost savings plan. In Swiss trading Credit Suisse stock surged nearly 3.2 %. In 2011 the Swiss bank announced cost cutting of 4 billion francs.
The Swiss bank proposed to pay the 2012 dividend at 65 centimes in shares and 10 centimes in cash. In the past year the bank allowed the shareholders to decide whether they wanted 75 centimes a share in stock or cash to help Credit Suisse strengthening its capital position.
Over the past six months the Credit Suisse stock had surged 59 %. It also gained nearly 26 % in the 40 company Europe Banks and Financial Services Index. In early hours trading the stock surged 2.4 % to close at 27.64 francs.
A recent scandal of alleged manipulation of interest rates is expected to leave the major lenders liable for billions of dollars in local and estimated state losses. The lenders have settled with national regulators as well.
The probe is being led by New York attorney general and claims that banks manipulated global benchmarks for borrowing. Yesterday Royal Bank of Scotland Group plc (ADR) (NYSE:RBS) agreed to pay nearly 612 million US dollars to United Kingdom and United States. In June Barclays PLC (ADR) (NYSE:BCS) agreed to pay 454 million US dollars in December while UBS AG agreed to pay 1.5 billion US dollars to resolve the probe.
Credit Suisse shares fell -1.25% to $29.19 as market opened today. Royal Bank of Scotland shares plunged -0.56% to $10.72 as market opened today, Barclays shares surged 0.05% to $18.54 as market opened.