Credit Suisse On Wednesday, it reported a net loss for the first quarter of 2022 and announced a management reshuffle, as the Swiss lender grapples with litigation costs and the fallout from the Russia-Ukraine war.
Net loss was 273 million Swiss francs ($283.5 million) for the quarter, after it sent a profit warning to markets last week. On Wednesday, the Swiss bank confirmed that losses related to Russia amounted to 206 million Swiss francs. There was also hit 155 million Swiss francs related to Archegos scandal.
Speaking to CNBC’s Jeff Cutmore, Credit Suisse CEO Thomas Gotstein said it was a “tough quarter”.
“We’ve had some off-duty things like legal rulings that were part of our old business and dealing with some old issues, and obviously we’ve had some headwinds with respect to Russia; so obviously we can’t be happy with the previous 0.4 billion – a tax loss “.
One of Credit Suisse’s biggest challenges this quarter was litigation costs, as it reported operating expenses were up 26% from a year ago.
“Our operating expenses were higher year over year, driven particularly by previously reported litigation expenses of CHF703 million for the quarter, as we continued our proactive approach to resolving litigation issues,” Gotstein said in a statement.
Gotstein added to CNBC that “no big bank in the world can say we’re done with the legal issues… We’ve made tremendous progress, as I said, especially with regard to our cases in the United States.”
Litigation costs were one of the biggest challenges Credit Suisse faced this quarter.
Thi My Lin Nguyen | Bloomberg | Getty Images
The bank also announced changes to its board of directors on Wednesday. David Mathers, who has been chief financial officer since 2010, is leaving the bank. However, he will remain in his current position until a replacement is found.
In addition, Hellmann Situhang is stepping down as CEO of the Asia Pacific region, and Romeo Cerruti is retiring as Group General Counsel. Francesca McDonagh will take over as CEO for EMEA in October.
Other notable achievements for this quarter include:
- Revenue decreased 42% from last year to CHF 4.4 billion.
- The return on tangible equity, a measure of a bank’s profitability, was 2.6% — unchanged from last year.
- CET1, a measure of bank solvency, was 13.8% versus 12.2% a year earlier.
—Elliott Smith of CNBC contributed to this article.