Europe financial news

Credit score Suisse Q1 2022 earnings

An indication above the doorway to the Credit score Suisse Group AG headquarters in Zurich, Switzerland, on Monday, Nov. 1, 2021.

Thi My Lien Nguyen | Bloomberg | Getty Pictures

Credit score Suisse on Wednesday reported a web loss for the primary quarter of 2022 and introduced a administration reshuffle, because the Swiss lender struggles with litigation prices and the fallout from the Russia-Ukraine battle.

The web loss got here in at 273 million Swiss francs ($ 283.5 million) for the quarter, after sending out a revenue warning final week. On Wednesday, the Swiss financial institution confirmed that Russia-related losses amounted to 206 million Swiss francs. There was additionally successful of 155 million Swiss francs associated to the Archegos scandal.

“Our working bills had been increased yr on yr, pushed particularly by increased beforehand reported litigation bills of 703 million Swiss francs for the quarter as we continued our proactive strategy to resolving litigation issues,” Thomas Gottstein, chief govt officer of Credit score Suisse, mentioned in a press release. Reported working bills had been up 26% from a yr in the past.

On the identical time, the financial institution introduced adjustments to its govt board. David Mathers, who has been chief monetary officer since 2010, is leaving the financial institution. Nevertheless, he’ll stay in his present place till a substitute is discovered.

As well as, Helman Sitohang is stepping down as CEO of the Asia-Pacific area and Romeo Cerutti is retiring from his group common counsel position. Francesca McDonagh is taking on as CEO of the Europe, Center East and Africa in October.

Different highlights for the quarter, included:

  • Revenues dropped 42% from a yr in the past to 4.4 billion Swiss francs.
  • Return on tangible fairness, a measure of financial institution profitability, was 2.6% — unchanged from a yr in the past.
  • CET 1 ratio, a measure of financial institution solvency, was 13.8% versus 12.2% a yr in the past.

Wednesday’s earnings come after steep losses on the finish of 2021 amid an array of scandals. Its chairman, Antonio Horta-Osorio, resigned earlier this yr after repeatedly violating Covid-19 quarantine guidelines.

Horta-Osorio had are available in with the intention of cleansing up the financial institution’s company tradition after its funding banking division suffered appreciable hits in 2021 as a result of its involvement with collapsed funding agency Archegos Capital and bancrupt provide chain finance firm Greensill.

For the entire of 2021, it posted a web lack of 1.57 billion Swiss francs, nicely beneath market expectations. The inventory is down 20.6% for the reason that begin of the yr.

—CNBC’s Elliot Smith contributed to this text.

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