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Capital hike means Credit Suisse misses Q4 forecast

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Capital hike means Credit Suisse misses Q4 forecast

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Credit Suisse has cut its profitability target and 2010 dividend for shareholders after missing profit forecasts for the fourth quarter.

It blamed tighter Swiss government banking rules which meant it had to keep more capital in reserve as a response to the financial crisis.

Analysts said fixed income, currency and commodities trading at Switzerland’s second-largest bank were disappointing.

Chief Executive Brady Dougan said Credit Suisse had cut its return on equity target — a measure of profitability — to “above 15 percent” from “above 18 percent” due to tighter capital regulations. The bank had RoE of 14.4 percent in 2010.

“That’s really a reflection of the new environment. We clearly have more capital being required for all banks,” Dougan said.