May 20, 2022
Credit Suisse bank

Credit Suisse Group is expecting to report a loss in the first quarter of 2022, with the fallout of Russia’s invasion of Ukraine and the resulting sanctions causing revenue losses along with a slowdown in business activity.

The bank confirmed this position in a statement.

Credit Suisse is still recovering from billions in losses accumulated in 2021, which caused heads to roll in the boardroom. The bank still faces additional probes over compliance and risk failings.

Shares of Credit Suisse fell by 1.5% in early trading.

Provisions relating to a number of legal matters is set to rise by about 600 million Swiss francs ($631m) to around 700 million francs. The matters, all of which originated over a decade ago, had been previously disclosed.

A major contributor to the large jump in legal expenses is understood to be a Bermuda court ruling last month that Georgia’s former prime minister and his family were due damages “substantially in excess of $500 million” from Credit Suisse due to fraud.

The statement said that the group “would expect to report a loss as a consequence of this increase in reserves,” without giving specific details. Credit Suisse is due to report its earnings on April 27th.

The impact of Vladimir Putin’s military action in Ukraine is set to have a large effect, with Credit Suisse heavily exposed to the fallout. The hostilities were expected to contribute a total of 200 million francs in losses.

The first-quarter results will also include losses of roughly 350 million francs due to the drop in value of its 8.6% holding in Allfunds Group, the bank said.