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| Bad debts weigh on Credit Suisse | Bad debts weigh on Credit Suisse |
| (about 2 hours later) | |
| Credit Suisse has reported its largest annual loss to date - 8.2bn Swiss francs ($7bn; £5bn) - most of which came in the last three months of 2008. | Credit Suisse has reported its largest annual loss to date - 8.2bn Swiss francs ($7bn; £5bn) - most of which came in the last three months of 2008. |
| For October to December, the Swiss bank made a net loss of 6bn Swiss francs, much higher than market expectations. | For October to December, the Swiss bank made a net loss of 6bn Swiss francs, much higher than market expectations. |
| Credit Suisse blamed the quarterly loss on three factors - a drop in business, cost-cutting work, and a fresh 3.2bn Swiss franc write-down on bad debt. | |
| It had been expected to make a fourth quarter loss of 4bn Swiss francs. | It had been expected to make a fourth quarter loss of 4bn Swiss francs. |
| Repositioning | Repositioning |
| Credit Suisse said the figures were "clearly disappointing", but said it had seen a strong start to 2009, with all of its divisions showing profit in the year to date. | |
| "We have positioned our businesses to be less susceptible to negative market trends if they persist in the coming months and to prosper when markets recover," said chief executive Brady Dougan. | "We have positioned our businesses to be less susceptible to negative market trends if they persist in the coming months and to prosper when markets recover," said chief executive Brady Dougan. |
| In December, Switzerland's second-largest bank warned it expected weak results for October and November, estimating a loss of about three billion francs and restructuring charges of 900m for the period. | |
| Credit Suisse's figures were also hit by one-off costs, such as the sale of part of its fund management arm to Aberdeen Asset Management, but it was a good sign that "toxic assets are now less of an item," said West LB analyst, Georg Kanders. | |
| "They have confirmed they have been significantly reduced," he said. | |
| The firm made an annual profit of 7.7bn Swiss francs in 2007. | The firm made an annual profit of 7.7bn Swiss francs in 2007. |
| Credit Suisse's results follow hot on the heels of UBS's, which released its figures on Tuesday. | |
| UBS reported a full-year net loss of almost 20 billion francs, but, like Credit Suisse, said 2009 had started well. | |
| Credit Suisse, which has been cutting back in an attempt to reduce costs, reaffirmed that its investment bank staff numbers would be down to 17,500 by the end of 2009, from 19,700 at the end of last year. It announced 5,300 job cuts in December. |