Credit Suisse braces for another loss

The Credit Suisse logo is seen at the headquarters in downtown Milan in this file picture taken on March 9, 2016. — Reuters pic

The Credit Suisse logo is seen at the headquarters in downtown Milan in this file picture taken on March 9, 2016. — Reuters pic

Wednesday, 08 Jun 2022 7:59 PM MYT

ZURICH, June 8 — Switzerland’s scandal-hit banking giant Credit Suisse warned today that it expected to post another loss in the second quarter as its investment division is hit by market volatility.

Credit Suisse, which was already pushed deeper into the red in the first quarter after a worse-than-expected loss last year, said market conditions “have remained challenging”.

Russia’s invasion of Ukraine, monetary tightening by central banks and the end of Covid-linked stimulus measures have caused “heightened market volatility”, weak customer flows and clients to lower their debts, the bank said.

“The impact of these conditions, together with continued low levels of capital markets issuance and the widening in credit spreads, have depressed the financial performance of this (investment bank) division in April and May,” it said in a statement.

The bank has now issued profit warnings for three quarters in a row.

Credit Suisse has been striving to rein in risks after taking a series of hits.

It was rocked in 2021 following the implosions of financial services firms Greensill and Archegos, which cost the bank billions. — AFP