Credit Suisse lowers profitability target

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Credit Suisse cut its profitability target and dividend yesterday, blaming tighter capital regulations, after it missed fourth-quarter profit forecasts on disappointing fixed-income trading.

The Swiss bank has cut its return on equity (RoE) target – a measure of profitability – to "above 15 per cent" from "above 18 per cent", said its chief executive, Brady Dougan. The bank had 14.4 per cent RoE in 2010.

Credit Suisse won market share from UBS when its local rival was saved from collapse by the Swiss government in 2008, but it is now struggling to maintain its advantage.