Credit Suisse Expects Loss In Q1 As Litigation Provisions, Russia-Ukraine Crisis Weigh

Credit Suisse Expects Loss In Q1 As Litigation Provisions, Russia-Ukraine Crisis Weigh
  • Credit Suisse Group AG CS said it is expecting a loss for the first quarter of fiscal 2022.
  • The company listed an increase in legal provisions and slow business activity due to Russia's invasion of Ukraine as the reasons for seeing a loss in the quarter.
  • The Swiss bank estimated total litigation provisions increasing 600 million Swiss francs, resulting in total litigation provisions for the quarter to be about 700 million Swiss francs.
  • The Russia-Ukraine crisis will cost the bank 200 million Swiss francs in negative revenues and provisions for credit losses.
  • "What surprises us is that in mid-March, at an investor conference, CEO Thomas Gottstein was still talking about a solid business performance in the first two months," Reuters quoted Luzerner Kantonalbank's research note.
  • Price Action: CS shares traded lower by 2.20% at $7.55 in pre-market on the last check Wednesday.

Posted In: BriefsEarningsNewsGuidanceMediaTrading Ideas