Scandal-plagued Swiss bank Credit Suisse expects another loss in the second quarter. That means another setback for the bank, which already issued several profit warnings last year.
Credit Suisse gave several reasons for the disappointing results, including the war in Ukraine, soaring inflation, interest rate hikes by central banks worldwide, the phasing out of corona support and the continuing challenging market conditions. The bank, therefore, expects that the investment branch and the entire group will end up in the red this quarter.
In April, Credit Suisse already warned of a financial blow of almost 195 million euros due to the war in Ukraine. In March, the bank decided not to issue new loans in Russia because of the war. The bank also once again has to set aside a lot of money for legal proceedings about scandals that have been going on for some time.
Credit Suisse’s investment bank, which acts as an intermediary or advisor in complex financial deals, has been involved in debacles surrounding the collapse of investment fund Archegos and finance company Greensill Capital. The new warning increases the pressure on CEO Thomas Gottstein to guide the company through the difficult period.
Credit Suisse reiterated that 2022 will be a transition year. On June 28, CEO Gottstein will provide an update on the bank’s cost-saving plans during an investor day.