High litigation costs in the US marred Credit Suisse’s fourth quarter last year and led to an annual profit of 3.07 billion Swiss francs ($3.39 billion) that fell below expectations.

Shares of Switzerland’s second biggest bank fell 2.03 per cent at the Six Swiss Exchange after Credit Suisse published its annual results on Thursday – the highest loss among companies traded in Zurich.

Credit Suisse more than doubled its annual net profit, but the result in 2012 had been dragged down by a one-off increase in the book value of the bank’s debt.

The annual revenue rose 9 per cent to 25.28 billion francs.

In the fourth quarter, Credit Suisse’s investment branch suffered losses as provisions for litigation were raised significantly. The bank is involved in disputes relating to its trade of controversial US mortgage products before the financial crisis.

Also, 175 million francs were set aside for an ongoing tax dispute with US authorities, who are charging that Credit Suisse and other Swiss banks have been helping US citizens hide untaxed income abroad.

In the fourth quarter, profit amounted to 267 million francs, 41 per cent below the third quarter and only marginally higher than in the same period of the previous year.

Analysts had expected a quarterly profit of 440 million francs.

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