Credit Suisse Group AG (NYSE:CS) shares traded lower by another 3.7% on Thursday morning after the company reported a $275 million net loss in the first quarter and said losses from its exposure to hedge fund Archegos Capital will spill into the second quarter.

What Happened? Credit Suisse said it took a $4.8 billion total hit from its exposure to Archegos in the first quarter and expects to take a further $655.8 million hit from Archegos in the second quarter as well.

“The loss we report this quarter, because of this matter, is unacceptable. Together with the Board of Directors, we have taken significant steps to address this situation as well as the supply chain finance funds matter,” said CEO Thomas Gottstein.

Credit Suisse also said it plans to raise more than $2 billion in capital to help it improve its balance sheet following the Archegos debacle.

Related Link: BofA Downgrades Credit Suisse Again: Archegos Losses 'Double What We Expected'

Why It’s Important: Investment bank CEO Brian Chin and chief risk and compliance officer Laura Warner have already resigned from their positions as part of the Archegos fallout. In addition, the bank said it's waiving executive bonuses for the entire 2020 year.

Following the earnings report, Bank of America analyst Alastair Ryan once again cut his price target for Credit Suisse from $9.80 to $9 and reiterated his Underperform rating. It's Ryan’s fourth price target cut for the stock in the past month since the Archegos news was first reported.

“With a strategic review ahead once the incoming chair has started, we see uncertainty elevated in coming months and no clear path to a Return on Equity at the 10-12% rightly identified by management as acceptable,” Ryan wrote in a note.

Benzinga’s Take: Credit Suisse doesn’t appear to be in any dire near-term liquidity crunch, and the $4.8 billion Archegos hit is likely already priced into the stock, which is down 23% in the past month. What is much more difficult for investors to judge is just how much damage has been done to Credit Suisse’s reputation and how much of a lasting impact Archegos could have on the company’s profitability and growth.