Salem Radio Network News Sunday, August 7, 2022

Business

Credit Suisse posts bigger than expected Q2 loss

ZURICH (Reuters) – Credit Suisse posted a 1.59 billion Swiss franc ($1.65 billion) second-quarter loss on Wednesday, badly missing market expectations as it announced the departure of its chief executive.

Analysts had expected a net loss of 206 million francs, according to a consensus https://www.credit-suisse.com/about-us/en/investor-relations/corporate-and-share-information/corporate-information/consensus-summary.html of 19 estimates compiled by the lender, which had warned in June of another quarterly loss as volatility and weak client flows hit its investment bank.

Its CET1 equity ratio stood at 13.5% of risk-weighted assets, hitting its near-term target of 13.5% and nearly at the 13.6% the market expected. That was below its 2024 target for above 14% and its first-quarter CET1 ratio of 13.8%.

“Our results for the second quarter of 2022 are disappointing, especially in the Investment Bank, and were also impacted by higher litigation provisions and other adjusting items,” Chief Executive Thomas Gottstein said in the statement.

($1 = 0.9614 Swiss francs)

(Reporting by Michael Shields and Maria Sheahan)

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