The year that should have hailed transition at Credit Suisse, looks like it is turning into more of the same as results were worse than expected.
Switzerland’s troubled bank delivered more bad news on Wednesday, announcing a pre-tax loss of 428 million Swiss francs ($446 million) for the first three months of the year.
That comes on top of a 1.7 billion francs loss in the fourth quarter of 2021.
In the first quarter of 2021, the bank reported a pre-tax loss of 757 million francs.
Russian Impact
Russia's invasion of Ukraine «negatively impacted» the bank's results, causing a 206 million franc loss, the bank said, adding that it had cut its Russian net credit exposure by 56 percent to 373 million francs since the end of 2021.The net asset value of Credit Suisse’s Russian subsidiaries is 200 million francs, which is down 16 million francs compared to the final quarter of last year.
New Money
The bank attracted net new assets of 7.9 billion francs in the first quarter, an improvement over the fourth quarter’s 1.6 billion francs, but still lagging the 28.4 billion francs which came in at the beginning of last year.
Total assets under management fell to 1.55 trillion francs, dropping from 1.61 trillion in the fourth quarter, and down 4 percent from the first quarter of last year.
Thomas Gottstein, Credit Suisse CEO, reiterated that 2022 is a transition year for the bank saying «Our clear focus remains on the disciplined execution of our new Group strategy as announced in November 2021: strengthening our core, simplifying our organization, and investing for growth.»
Supply Chain Finance
As of the end of the quarter, Credit Suisse reported that discussions with GFG Alliance and Bluestone on refinancing and restructuring other assets continue. In addition, it filed 14 insurance claims through the filing process with Greensill banks, with a total underlying exposure of around $2 billion.
