The final quarterly figures are to be published as planned on April 27th.
(Photo: Bloomberg)
Zurich After losing billions in 2021, the major Swiss bank Credit Suisse also started the new year in the red. New provisions for old legal disputes, the war in Ukraine and the impairment of an investment are likely to result in a loss in the first quarter, the money house announced in Zurich on Wednesday.
The biggest burden comes from litigation dating back more than a decade. For this, the bank is increasing its provisions by around 600 million Swiss francs (587 million euros).
Overall, the provisions for legal cases in the first quarter should amount to around 700 million francs, it said. In addition, there would be negative income and loan losses of around CHF 200 million as a result of the Russian attack on Ukraine.
In addition, the institute expects a charge of around CHF 350 million due to a write-down on its stake in the Allfunds Group. Those losses would be partially offset by unwinding provisions for last year’s collapse of hedge fund Archegos and real estate gains. The final quarterly figures are to be published as planned on April 27th.
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The profit warning contrasts with statements made by CEO Thomas Gottstein at an investor conference in mid-March. At the time, he had described the course of business in the first two months as “relatively solid”. Because of Archegos and the bankruptcy of the financial conglomerate Greensill, Credit Suisse reported a loss of almost CHF 1.6 billion in 2021.
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