Credit Suisse warns of first-quarter loss
By Abigail Townsend
Date: Wednesday 20 Apr 2022
(Sharecast News) - Credit Suisse expects to post a first-quarter loss, the bank warned on Wednesday, after legal provisions ballooned.
The Swiss lender said it was setting aside a further CHF 600m (£485m) to cover litigation provisions, bringing the total provision to CHF 700m.
Credit Suisse said: "The group will announce its earnings for the first quarter of 2022 on 27 April and would expect to report a loss as a consequence of this increase in reserves."
It did not specify what the provision related to, other than to note that all the legal matters "originated more than a decade ago".
However, last month a court in Bermuda ruled that the former prime minister of Georgia, Bidzina Ivanishvili, and his family were due damages in excess of $500m from the bank's local life insurance arm following a fraud committed by a former Credit Suisse banker.
At the time, the lender said the arm - which is in the process of being wound down - would "vigorously pursue" an appeal.
Credit Suisse also warned that its exposure to the war in Ukraine would adversely affect the first quarter results by around CHF 200m, through negative revenues and provisions for credit losses.
As at 1130 BST, shares in Credit Suisse were down 2% in both Zurich and in pre-market trading in New York.
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