Credit Suisse has posted a net loss CHF273m for the first quarter of 2022, driven primarily by legal expenses and the fallout from the Russia-Ukraine war.
The net loss is slightly more than the loss of CHF252m a year ago.
Go deeper with GlobalData
The Swiss wealth manager’s legal expenses during the quarter soared to CHF703m, while Russia-related losses amounted to CHF206m.
Credit Suisse, which warned of first quarter loss last week, reported net revenues of CHF4.4bn, a slump of 42% compared with CHF7.57bn a year ago.
Assets under Management (AuM) declined by 3% to CHF1.5 trillion from CHF1.61 trillion a year ago.
“The combination of the current geopolitical situation following Russia’s invasion of Ukraine and the significant monetary tightening initiated by several of the major central banks in response to inflation concerns have resulted in heightened volatility and client risk aversion so far this year,” the bank said in its press statement.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe group also announced departure of CFO David Mathers, chief counsel Romeo Cerutti and Asia chief Helman Sitohang.
Wealth Management
The wealth management arm of the bank posted pre-tax income of CHF212m, down 74% year on year. The bank attributed the fall to a loss on the equity investment in Allfunds Group of CHF353m, litigation provisions of CHF237m, an adverse Russia-related impact of nearly CHF99.
The business reported net revenues of CHF1.2bn, a decline of 44% compared with the year ago period.
The unit had net new asset (NNA) of CHF4.8bn for the first quarter and recorded AuM of CHF707bn versus CHF757bn in the first quarter of 2021.
Asset Management
Credit Suisse’s asset management arm posted adjusted pre-tax income of CHF51m for the first quarter of 2022, which represents a fall of 62% year on year.
Net revenues stood at CHF361m, a decline of 10% year on year.
The business registered net asset outflows of CHF0.6bn for the quarter, mainly driven by outflows from fixed income and credit, partially offset by inflows into Index Solutions and an emerging markets joint venture.
