The Swiss bank's profits shrank amid losses on Archegos, while both its main wealth arm and its Swiss private bank suffered net outflows of money.

Zurich-based Credit Suisse's profit in the second quarter dropped to 253 million Swiss francs ($273 million) from 1.16 billion francs a year ago, it said in a statement on Thursday. The result was flattened by 653 million francs of losses on Archegos and a higher tax bill.

An investigation into Archegos led by the bank's board, disclosed in a separate statement on Thursday, found various failings but no criminal wrongdoing. Credit Suisse suffered Wall Street's worst losses, by far – more than $5 billion– from the family office-hedge fund dealings. 

In its outlook, Credit Suisse said it expected frenzied financial market activity to level off compared to last year, and that it will continue to throttle risk-taking. The Swiss bank also said it expects to continue to release credit provisions – following 227 million francs in the first two quarters – as the economy improves.

Wealthy Pull Money

Archegos is one of two car crashes at Credit Suisse (the second is its $10.1 billion Greensill fund implosion). Credit Suisse maintained various ties with the insolvent U.K. supply chain finance firm. It has thus far returned just over half the total held in the funds, primarily sold to wealthy clients of its private bank.

Credit Suisse said wealthy clients pulled money in the second quarter: 900 million francs left its Swiss unit due to «a small number of individual cases in the ultra-high net worth and high net worth client segments,» it said. The international arm shed another 300 million francs, mainly in western Europe.

Defections Amid Review

Credit Suisse locked down risk-taking following the blow-ups, which both surfaced publicly in March. The two issues required a $1.9 billion capital infusion from anchor shareholders in April. The bank has reportedly suffered more than 30 defections at its investment bank since the scandals broke.

Chairman António Horta-Osório launched a review of Credit Suisse's risk, culture, and strategy when he arrived 12 weeks ago. Four weeks ago, he cautioned that investors and employees shouldn't expect a quick fix to the Swiss bank's problems.

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