UK Credit

Credit Suisse posts $2.2 billion loss in fourth quarter By Reuters

© Reuters. FILE PHOTO: The logo of Swiss bank Credit Suisse is seen at a branch in Zurich, Switzerland November 3, 2021. Picture taken November 3, 2021. REUTERS/Arnd WIegmann

By Brenna Hughes Neghaiwi

ZURICH (Reuters) – Credit Suisse reported a net loss of 2 billion Swiss francs ($2.2 billion) in the fourth quarter on Thursday, hurt by provisions to settle legal fees for its investment bank and a slowdown activities of its trading and wealth management divisions.

The scandal-ridden lender had reported a loss in January.

For the full year, net income attributable to shareholders fell to 1.572 billion francs. This compared to a profit of 2.7 billion francs for 2020.

It’s been a horrific 2021 for Switzerland’s second largest bank, marked by the collapse of $10 billion in supply chain finance funds linked to insolvent British financial firm Greensill and a business loss of $5. 5 billion dollars due to the implosion of the Archegos investment fund.

“2021 has been a very difficult year for Swiss credit (SIX:). Our reported financial results were negatively impacted by the Archegos matter, impairment of goodwill related to the acquisition of Donaldson, Lufkin & Jenrette (DLJ) in 2000 and litigation provisions, as we proactively seek to resolve legacy issues,” Thomas Gottstein, managing director of Credit Suisse, said in a statement.

“During the last three quarters of the year, we led the bank with a limited risk appetite across all divisions, as we took decisive steps to strengthen our overall risk and control base and continued our remediation efforts, including on the issue of supply chain finance funds, where our priority is to return liquidity to investors,” he added.

Last year’s scandals, preceded by an executive spy scandal in 2019, were only followed by others. It started 2022 with the abrupt start last month of its chairman introduced just nine months earlier and became the first major Swiss bank to face a criminal trial -trial-bulgarian-cocaine-traffickers-2022-02-07, accused of allowing an alleged Bulgarian cocaine trafficking gang to launder millions of euros.

The bank’s shares have lost nearly a third of their value since the start of 2020.

Tasked with reforming the bank’s freewheeling corporate culture, Credit Suisse Chairman Axel Lehmann said he wanted to stick to his predecessor’s strategy of focusing on wealth management, noting that business with clients remained excellent at the time of his appointment in January.

($1 = 0.9242 Swiss francs)

Warning: Merged media would like to remind you that the data contained in this site is not necessarily in real time or exact. All prices for CFDs (stocks, indices, futures) and Forex are not provided by exchanges but rather by market makers, and therefore prices may not be accurate and may differ from the actual market price, which which means that the prices are indicative and not suitable for commercial purposes. Therefore, Fusion Media assumes no responsibility for any business losses you may incur due to the use of this data.

Merged media or anyone involved with Fusion Media will accept no liability for any loss or damage resulting from reliance on the information, including data, quotes, charts and buy/sell signals contained in this website . Please be fully informed of the risks and costs associated with trading in the financial markets, it is one of the riskiest forms of investment possible.