Switzerland. Credit Suisse warns of the negative impact on its accounts for litigation provisions

Madrid, 25 years old. (European Press) –

Swiss bank Credit Suisse has announced that its results for the fourth quarter of 2021 will be “negatively affected” by the supposed litigation rulings, which are worth about 500 million Swiss francs (483 million euros).

In this sense, Credit Suisse explained that these rulings dovetail with a series of cases in which it has proactively sought settlements and relate primarily to inherited litigation from the investment banking business.

The Swiss entity, which last week announced the resignation of Antonio Horta Osorio as president after he violated Covid-19 quarantine rules on more than one occasion, indicated that the effect of the supposed legal provisions in the fourth quarter was only partially offset by a capital gain of 225 million francs ( 217 million euros) obtained from the sale of real estate.

Thus, before deducting the impairment of about 1,600 million francs (1,547 million euros), of which approximately 1,500 million francs (1,450 million euros) corresponds to the investment banking division, the assumption of this Allocations to be taxed before tax. The result of “almost a tie” in the last quarter of 2021.

In terms of business development, Credit Suisse recognized a decline in revenue based on transactions in investment banking and wealth management, reflecting the usual seasonal slowdown as well as a return to more normal business conditions after the exceptional environment that prevailed for most of 2020 and 2021.

“Combined with a decrease in our overall appetite for risk, including our decision to significantly exit our core services business, this resulted in a fourth-quarter 2021 loss in the Investment Banking division (before the investment fund’s impairment),” the bank warned.

Similarly, the entity warned that in the wealth management business “there has been a significant slowdown” in transaction activity in its International Wealth Management division and its Asia Pacific division.

The Swiss bank, which will publish its accounts for the fourth quarter and fiscal year 2021 on February 10, announced that it expects its maximum quality core capital ratio CET1 at the end of last year to exceed the target of 14%, while it expects the leverage ratio of Tier 1 to be above 6% .