Credit Suisse expects to post second-quarter loss

MADRID, 8 Jun. (EUROPA PRESS) -

The Swiss bank Credit Suisse has warned that it expects to close the second quarter of the year in losses as a result of the high volatility in the market derived from the invasion of Ukraine, the monetary tightening by the main central banks in response to inflation and the withdrawal of stimuli deployed during the pandemic.

In this way, the entity has recognized that the market conditions so far in the second quarter of 2022 have remained challenging, registering greater market volatility, weak client flows and a continuous deleveraging of clients, especially in the region. Asia Pacific (APAC).

Specifically, the impact of these conditions on the investment banking business, coupled with continued low levels of capital markets issuance and widening credit spreads, have depressed this division's financial performance in April and May." and are likely to generate losses for this division as well as losses for the Group in the second quarter of 2022."

In this way and given the economic and market environment, the Swiss entity has announced that it will accelerate its cost initiatives throughout the Group with the aim of maximizing savings from 2023.

Also, with respect to capital, the bank intends to operate with a CET1 ratio of around 13.5% in the short term, in line with the 2024 target of reaching a CET1 ratio of more than 14% before the planned Basel III reforms.