Credit Suisse forecasts loss in reported earnings for Q1 2022
Credit Suisse Group AG announces today that its reported earnings for the first quarter of 2022 will be negatively impacted by a decision to increase litigation provisions relating to developments in a number of previously disclosed legal matters, all of which originated more than a decade ago, by approximately CHF 600 million, resulting in total litigation provisions for the quarter of approximately CHF 700 million.
The Group will announce its earnings for the first quarter of 2022 on Wednesday, April 27th, and would expect to report a loss as a consequence of this increase in reserves.
With regard to its exposure to the impact of the situation in Ukraine both on its counterparties and on its credit risks, Credit Suisse says its results will be adversely affected by an aggregate of approximately CHF 200 million of negative revenues and provisions for credit losses.
As noted in its 2021 Annual Report, Credit Suisse first quarter results will also include approximately CHF 350 million of losses relating to the decrease in the value of its 8.6% holding in the publicly listed Allfunds Group, and its underlying results have been adversely impacted by a reduction in capital market issuances and by lower business activity.
These losses will be partially offset by a recovery in provisions of approximately CHF 170 million in respect of claims against Archegos and by real estate gains of approximately CHF 160 million.