Credit Suisse warns of first-quarter loss as legal provisions balloon

Credit Suisse has warned it expects a first-quarter loss after a pointy enhance in its authorized provisions, the newest blow to the Swiss financial institution that has struggled to attract a line below a number of crises lately.

The financial institution mentioned on Wednesday that it will put aside an extra SFr600mn (£484mn) for litigation provisions within the first quarter, taking the overall to about SFr700mn, for what it described as developments in authorized issues that began greater than a decade in the past.

Alongside the a lot greater authorized provisions, Credit Suisse mentioned that the fallout from Russia’s invasion of Ukraine would depart it with about SFr200mn of “negative revenues and provisions for credit losses”.

The financial institution didn’t present particulars of the litigation coated by the provisions, however the enhance comes lower than a month after Bidzina Ivanishvili, the previous prime minister of Georgia, gained a long-running authorized case in opposition to it.

Credit Suisse on the time mentioned it might be pressured to pay greater than $500mn following the loss. The financial institution will report its first-quarter outcomes on April 27.

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