Credit Suisse expects first-quarter loss after boosting legal provisions

A sign above the entrance to the Credit Suisse Group AG headquarters in Zurich, Switzerland, on Monday, Nov. 1, 2021.

Thi My Lien Nguyen | Bloomberg | Getty Images

Credit Suisse Group expects a loss in reported first-quarter earnings after increasing legal provisions, the Swiss bank said on Wednesday.

It said provisions relating to a number of previously disclosed legalmatters, all of which originated more than a decade ago, would rise by around 600 million Swiss francs ($631 million) to total approximately 700 million francs.

“The Group will announce its earnings for the first quarter of 2022 on Wednesday, April 27th, and would expect to report a loss as a consequence of this increase in reserves,” it said without being more specific.

Its exposure to the impact of Russia’s invasion of Ukraine would adversely affect results by 200 million francs in negative revenues and provisions for credit losses. First-quarter results will also include approximately 350 million of losses relating to the decrease in the value of its 8.6% holding in Allfunds Group, it said.

Underlying results had been adversely impacted by a reduction in capital market issuances and by lower business activity, it added.

These losses would be partially offset by a recovery in provisions of approximately 170 million francs in respect of claims against collapsed investment fund Archegos and by real estate gains of approximately 160 million, it said.

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