Credit Suisse on Wednesday reported a web loss for the primary quarter of 2022 and introduced a administration reshuffle, because the Swiss lender struggles with litigation prices and the fallout from the Russia-Ukraine conflict.
The online loss got here in at 273 million Swiss francs ($283.5 million) for the quarter, after it despatched out a revenue warning to the markets final week. On Wednesday, the Swiss financial institution confirmed that Russia-related losses amounted to 206 million Swiss francs. There was additionally a success of 155 million Swiss francs related to the Archegos scandal.
Talking to CNBC’s Geoff Cutmore, Thomas Gottstein, chief govt officer of Credit score Suisse, mentioned it was a “robust quarter.”
“We had sure one-offs just like the authorized provisions which was a part of our legacy work and coping with a few of the outdated legacy instances, we clearly additionally had some headwinds with respect to Russia; so clearly we can’t be proud of a 0.4 billion pre-tax loss,” he mentioned.
Litigation prices
One of many greatest challenges for Credit score Suisse this quarter was litigation prices, reporting that working bills have been up 26% from a 12 months in the past.
“Our working bills have been increased 12 months on 12 months, pushed particularly by increased beforehand reported litigation bills of 703 million Swiss francs for the quarter as we continued our proactive strategy to resolving litigation issues,” Gottstein mentioned in a press release.
Gottstein added to CNBC that “no giant financial institution on this planet can say we’re completed with authorized instances … we’ve made super progress, as I mentioned, particularly with our U.S. instances.”
One of many greatest challenges for Credit score Suisse this quarter was litigation prices.
Thi My Lien Nguyen | Bloomberg | Getty Pictures
Administration reshuffle
The financial institution additionally introduced modifications to its govt board Wednesday. David Mathers, who has been chief monetary officer since 2010, is leaving the financial institution. Nevertheless, he’ll stay in his present place till a substitute is discovered.
As well as, Helman Sitohang is stepping down as CEO of the Asia-Pacific area and Romeo Cerutti is retiring from his group basic counsel position. Francesca McDonagh is taking on as CEO of the Europe, Center East and Africa in October.
Different highlights for the quarter, included:
- Revenues dropped 42% from a 12 months in the past to 4.4 billion Swiss francs.
- Return on tangible fairness, a measure of financial institution profitability, was 2.6% — unchanged from a 12 months in the past.
- CET 1 ratio, a measure of financial institution solvency, was 13.8% versus 12.2% a 12 months in the past.
—CNBC’s Elliot Smith contributed to this text.
