Credit Suisse records another quarterly loss and reshuffles management

The logo of Swiss bank Credit Suisse is seen at its headquarters on Paradeplatz square in Zurich, Switzerland October 1, 2019. REUTERS/Arnd Wiegmann

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ZURICH, April 27 (Reuters) – Credit Suisse (CSGN.S) posted a first-quarter loss of 273 million Swiss francs ($283.6 million) on Wednesday, prolonging the financial woes of the beleaguered lender after a series of scandals .

The bank also announced another round of senior management departures.

The first-quarter loss, following new lawsuits and a nearly halving of net income, puts further pressure on Switzerland’s second-biggest bank, which is still reeling from billions in accumulated losses in 2021 and as shareholder pushback increases on what has been described as a freewheeling culture.

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The loss, which Credit Suisse warned of last week, was larger than the 252 million franc loss it had posted a year earlier and marked its fourth quarter in the red of the last six.

“The first quarter of 2022 was marked by volatile market conditions and client risk aversion. These conditions, along with the impact of our reduced risk appetite in 2021 as we took decisive actions to strengthen our overall risk and control base, have had a negative impact on our net income,” Chief Executive Thomas Gottstein said in a statement.

Credit Suisse also announced the departure of three of its longest-serving executives, saying chief financial officer David Mathers would leave as soon as a suitable successor is found, while group legal director Romeo Cerutti would retire after more than 10 years. , to be replaced by Markus Diethelm, former legal adviser to UBS (UBSG.S).

It named Edwin Low to head its Asia-Pacific business, confirming statements from sources on Wednesday that Low would replace veteran banker Helman Sitohang. Read more

The bank has tried to reform its risk management culture and turn the page on a series of scandals, which have prompted multiple senior management upheavals, abrupt departures and internal and external investigations.

In recent months, he has also become a defendant in the first criminal case against a major bank in Switzerland, while a court in Bermuda ruled in March that a local branch of the lender owed billionaire Bidzina Ivanishvili “substantially more than 500 million dollars” over a long period of time. – current fraud committed by a former adviser. Read more

On Wednesday, it said it had increased its legal provisions by 703 million francs in the quarter, dragging it into a loss.

Investors and analysts have been looking for signs of the series of scandals’ impact on client relations at the bank, seen as the bedrock of Credit Suisse’s top wealth and ultra-wealth segments in the management of money. fortune.

On Wednesday, it said its core wealth management business, which it was trying to consolidate, saw 4.8 billion Swiss francs in new client inflows in the first three months of the year, driven mainly by ultra-rich clients in Switzerland as well. as its Asian and external asset management businesses.

The business’s revenue, meanwhile, fell 44% as it pointed to a slowdown in its tie-up with wealth and investment bank Global Trading Solutions – an area the bank is targeting for growth. as part of its new strategy – as well as lower brokerage and product fees.

The disappointing results demonstrated a growing rift between Credit Suisse and its biggest rival UBS (UBSG.S), which on Tuesday posted its best first-quarter net profit in 15 years. Read more

(This story corrects grammar in title)

($1 = 0.9627 Swiss francs)

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Reporting by Brenna Hughes Neghaiwi; Editing by Michael Shields and Muralikumar Anantharaman

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