Credit Suisse (CS) Posts Impressive Q4 Earnings

Credit Suisse Group AG (CS) shares are up more than 9% to $23.37 in mid-day trading Thursday after the company reported its fourth quarter earnings results.

The Swiss bank reported earnings of $0.54 per share on revenues of $6.4 billion, up 2.8% from a year ago. Analysts were expecting EPS of $0.45 on revenues of $6.1 billion.

Net income attributable to shareholders came in at $955 million vs. a loss of $526.8 million in the year-ago quarter.

The bank said 4Q’14 performance “reflects strength of diversified franchise; stable revenues and improved returns in spite of increased market volatility and adverse impact from the recognition of funding valuation adjustments.” Credit Suisse CEO, Brady W. Dougan commented: “Our strategic businesses generated a return on equity of 11 percent for the quarter and 12 percent for the full year. During the quarter, we further reduced leverage exposure, continued to execute our capital measures and exceeded our 10 percent Look-through CET1 year-end target, including the impact of the US settlement.”

On valuation measures, Credit Suisse Group AG ADS shares, which currently have an average 3-month trading volume of 1,2 million shares, trade at a trailing-12 P/E of 57.32, a forward P/E of 8.66 and a P/E to growth ratio of 1.54. The median Wall Street price target on the name is $23.21.

Profitability-wise, CS has a t-12 profit and operating margin of 2.74% and 16.95%, respectively. The $37.25B market cap firm reported $528.05B in cash vs. $373.95B in debt in its most recent quarter.

CS currently prints a one year loss of about 29%, and a year-to-date loss of 14.63%.

The chart below shows where the equity has traded over the last 52 weeks.

Credit Suisse Group AG, together with its subsidiaries, provides various financial services to private, corporate, institutional, and government clients, as well as high-net-worth individuals worldwide. The company was founded in 1856 and is headquartered in Zurich, Switzerland.

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