Credit Suisse on Wednesday reported a net loss for the first quarter of 2022 and announced a change in governance as the Swiss lender struggles with court costs and the aftermath of the Russia-Ukraine war.
The net loss was 273 million Swiss francs ($ 283.5 million) for the quarter, after sending a profit warning to markets last week. On Wednesday, the Swiss bank confirmed that losses related to Russia amounted to 206 million Swiss francs. There was also a blow of 155 million Swiss francs related to the Archegos scandal.
Speaking to Jeff Cutmore of CNBC, Thomas Gotstein, CEO of Credit Suisse, said it was a “difficult quarter”.
“We had certain one-off cases like the legal provisions that were part of our inheritance work and dealing with some of the old inheritance cases, we obviously had some obstacles with regard to Russia; so obviously we can’t be satisfied with 0.4 billion in advance – a tax loss, “he said.
Legal expenses
One of the biggest challenges for Credit Suisse this quarter was court costs, with operating costs up 26% from the previous year.
“Our operating costs were higher on an annual basis, due in particular to the higher previously reported court costs of 703 million Swiss francs for the quarter, as we continued our proactive approach to resolving litigation,” Gotstein said. in a statement.
Gotstein added to CNBC that “no big bank in the world can say that we have closed the lawsuits … we have made great progress, as I said, especially with our cases in the United States.”
One of the biggest challenges for Credit Suisse this quarter was court costs.
Thi My Lien Nguyen Bloomberg | Getty Images
Change of management
The bank also announced changes to its executive board on Wednesday. David Mathers, who has been chief financial officer since 2010, is leaving the bank. However, he will remain in his current position until a replacement is found.
In addition, Hellman Sitohang is stepping down as CEO of the Asia-Pacific region, and Romeo Cerutti is stepping down as general adviser to the group. Francesca McDonagh will take over as CEO of Europe, the Middle East and Africa in October.
Other highlights for the quarter, including:
- Revenue fell 42% from a year earlier to 4.4 billion Swiss francs.
- The return on tangible capital, a measure of the bank’s profitability, was 2.6% – unchanged from a year ago.
- The CET 1 ratio, a measure of the bank’s solvency, was 13.8% against 12.2% a year ago.
-Elliot Smith of CNBC contributed to this article.
Add Comment