Credit Suisse Reports $1.4B Pre-Tax Loss Amid Continued Trouble In Q4

GENEVA (AP) – Credit Suisse on Thursday reported a pre-tax loss of more than CHF 1.3 billion (about $1.4 billion) in the fourth quarter of last year as its new managers vie to fix a top-notch Swiss bank that faced a string of setbacks in recent years.

The bank also announced the purchase of the investment banking business of the American company M. Klein & Co. for $175 million and plans to transfer these operations to the revived investment bank CS First Boston.

The Zurich-based company, the No. 2 bank in Switzerland after UBS, said net revenue fell 20% year-over-year to 3 billion francs in the fourth quarter. The pre-tax loss was almost 1.32 billion francs, compared to 1.67 billion in the same period a year earlier.

Credit Suisse has seen its investment banking business shrink while its Swiss banks and asset management operations have increased as a share of revenue. The company says it expects losses in both the investment bank and asset management divisions in the first quarter of this year, due in part to a reduction in assets under management and lower deposits following the announcement of a broad restructuring in October.

The bank’s performance last year as a whole “was mainly driven by significantly lower” investment banking earnings, indicating an “industry-wide slowdown in capital markets” with all major indices falling in 2022, the statement said.

In October, Credit Suisse unveiled a “radical strategy” to revamp itself with measures including spending cuts, staff cuts, risk-mitigation measures and a cash injection by buying shares from the National Bank of Saudi Arabia.

Credit Suisse has faced numerous challenges in recent years, including bad bets on hedge funds and a spying scandal involving UBS. In September, a Swiss court fined the bank more than $2 million for failing to prevent money laundering linked to a Bulgarian crime ring more than 15 years ago.

For the year, revenue fell 34% to 14.92 billion francs and a pre-tax loss of 3.26 billion francs, compared to a pre-tax loss of 600 million francs in 2021.

Content Source

News Press Ohio – Latest News:
Columbus Local News || Cleveland Local News || Ohio State News || National News || Money and Economy News || Entertainment News || Tech News || Environment News

Related Articles

Back to top button