Salem Radio Network News Monday, June 27, 2022

Business

Credit Suisse says loss likely for second quarter

ZURICH (Reuters) – Credit Suisse is likely to experience a group-wide loss in the second quarter, the bank said on Wednesday, a further blow to the embattled lender.

Switzerland’s second-biggest bank is still reeling from billions in losses racked up in 2021 and a further loss in the first quarter this year.

It has described 2022 as a “transition” year, in which it is trying to turn the page on costly scandals that brought ousters and a near-total reshuffle of top management.

On Wednesday, it said its investment bank, a focus of a November revamp that included an exit from prime broking, was likely to lead to a group-wide loss in the second quarter on the back of the fall-out of Russia’s invasion of Ukraine and significant monetary tightening, which it said had led to weak customer flows and client deleveraging, particularly in the Asia-Pacific region.

“Within the Investment Bank … the impact of these conditions, together with continued low levels of capital markets issuance and the widening in credit spreads, have depressed the financial performance of this division in April and May and are likely to lead to a loss for this division as well as a loss for the Group in the second quarter of 2022,” Credit Suisse said in a statement.

It did not give an estimate of the second-quarter loss.

It said earnings would also be affected by continued volatility in the market value of the bank’s 8.6% holding in Allfunds Group.

The bank said it aimed to accelerate cost initiatives announced as part of its reorganisation in November, “with the aim of maximizing savings from 2023 onwards”.

(Reporting by Brenna Hughes Neghaiwi; Editing by Miranda Murray, Robert Birsel)

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