Zurich The crisis-plagued Credit Suisse is heading for the third quarterly loss in a row. The effects of the difficult market environment, together with the persistently low level of capital market issues and the widening of credit spreads, weighed on the financial development of the investment bank in April and May, the major Swiss bank announced on Wednesday. This will likely result in a loss for this division and a loss for the group in the second quarter of 2022.
Looking ahead to the second half of the year, Credit Suisse reiterated that 2022 will be a year of transition. “Given the economic and market environment, we are accelerating our cost initiatives across the group with the goal of maximizing savings from 2023 onwards,” the statement said.
The bank will announce details at an investor event on June 28th. The institute does not want to change the strategy. In the short term, Credit Suisse intends to operate with a Common Equity Tier 1 (CET1) ratio of around 13.5 percent. The bank is still aiming for a core capital ratio of more than 14 percent by 2024.
The Reuters news agency reported last week that, according to insiders, the bank is considering measures to strengthen capital. One option is a capital increase. In the first quarter, the institute had already made a loss of 273 million francs, in the three months before that a deficit of 2.1 billion francs.
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Market conditions were also difficult in the second quarter of 2022, it said. The Russian invasion of Ukraine, the significant tightening of monetary policy by major central banks and the end of the corona-related stimulus measures have led to increased market volatility, weak customer movements and ongoing customer deleveraging. This applies in particular to the Asia-Pacific region.
In addition, the result is also influenced by the ongoing volatility of the market value of the investment in the fund platform Allfunds Group.
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