LEAD: Credit Suisse sees profit plunge 62 per cent in 2011

Feb 9, 2012, 10:12 GMT

Zurich - Credit Suisse's net profit plunged 62 per cent to 1.95 billion Swiss francs (2.15 billion dollars) in 2011, which was marked by low interest rates and turbulent financial markets, company results showed Thursday.

Switzerland's second biggest bank made a loss of 637 million francs in the fourth quarter, compared to a profit of 841 million francs in the same period in 2010.

'Our performance for the fourth quarter 2011 was disappointing,' said chief executive Brady Dougan.

Credit Suisse has started cutting costs, shedding businesses with low returns and reducing its risky assets, but these steps cost some 1 billion francs in the fourth quarter.

Annual net revenues fell 16 per cent to 26.23 billion francs, as income from trading and fees declined.

The company's investment trading sector saw a quarter-to-quarter deterioration and an annual profit decline of 98 per cent.

Credit Suisse is faced with charges of aiding German and US tax evaders and has had to set aside 475 million francs for these legal cases.

The bank's share price fell my more than 1.6 per cent in the first hours of trading on the Swiss stock exchange.

Switzerland's biggest bank UBS said this week that its profit dropped 44 per cent to 4.2 billion francs in 2011.