Credit Suisse posts 2010 profit slump of 24 %

10th February 2011, Comments 0 comments

Swiss banking giant Credit Suisse said Thursday that annual net profit for 2010 plunged 24 percent to 5.1 billion francs (5.3 billion dollars, 3.4 billion euros), amid weak performance by its investment bank unit.

The group said income generated by its investment bank reached 3.5 billion francs for the year, almost half of what was posted in 2009. This also reflected a one-fifth drop in revenues recorded by the unit.

Private banking also recorded a drop of 6 percent in income before taxes, reaching 3.4 billion francs.

With tougher banking regulations governing capital due to set in, the bank said it was cutting its target on return to equity from 18 percent to 15 percent. Return on equity reached 14.4 percent in 2010.

"2010 saw significant progress in defining the new regulatory environment. In light of this we have adjusted some of our existing targets and now target return on equity of above 15 percent and a net new asset growth rate of above 6 percent," said Brady Dougan, chief executive officer.

"These targets represent a prudent expectation of what our business can generate over the long term," he added.

© 2011 AFP

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