Credit Suisse reports net loss for first quarter, reshuffles management team as litigation costs bite
Credit Suisse has reported a net loss of 273 million Swiss francs ($ 283.5 million) for the first quarter of the year.
Analysts had estimated a net income of 209 million Swiss francs for the period, according to data from Refinitiv. But in a statement last week, Credit Suisse warned that it was expecting a loss after a taking a hit from the fallout of Russia’s invasion of Ukraine and an increase in legal provisions.
On Wednesday, the Swiss bank confirmed that Russia-related losses amounted to 206 million Swiss francs. There was also a hit of 155 million Swiss francs related to Archegos.
Wednesday’s earnings come after steep losses at the end of 2021 amid an array of scandals. Its chairman, Antonio Horta-Osorio, resigned earlier this year after repeatedly violating Covid-19 quarantine rules.
Horta-Osorio had come in with the intention of cleaning up the bank’s corporate culture after its investment banking division suffered considerable hits in 2021 due to its involvement with collapsed investment firm Archegos Capital and insolvent supply chain finance company Greensill.
For the whole of 2021, it posted a net loss of 1.57 billion Swiss francs, well below market expectations. The stock is down 20.6% since the start of the year.
–CNBC’s Elliot Smith contributed to this article.
This is a breaking news story and it is being updated.