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Credit Suisse takes hit from conflict, litigation

ZURICH (AFP) – Swiss banking giant Credit Suisse warned yesterday that it will face a loss in the first quarter due to the impact of longstanding legal matters and Russia’s invasion of Ukraine.

The country’s second biggest bank said its results “will be adversely affected” by the Ukraine conflict to the tune of CHF200 million (USD211 million) in lost revenue and provisions for credit losses.

Credit Suisse said it was also setting an extra CHF600 million aside for litigation that dates back more than a decade, bringing the total provisions for the cases to CHF700 million.

The bank will also see losses of around CHF350 million from the decrease in value of its holding in Allfunds Group, a business-to-business platform.

Credit Suisse already suffered a loss in 2021 following the implosions of financial services firms Greensill and Archegos.

The bank said its first quarter losses will be partially offset by the recovery of CHF170 million that it had set aside in provisions related to Archegos, along with real estate gains of CHF160 million.

It will publish its quarterly results on April 27.