Credit Suisse braces (Credits: Google)
- Credit Suisse was already in the red in the first quarter due to a larger-than-expected loss last year.
- Russia’s invasion of Ukraine, monetary tightening by central banks and end.
- Covid-linked stimulus measures have caused “heightened market volatility”, the bank said.
Credit Suisse, the scandal-plagued Swiss banking giant, warned on Wednesday that it expects to report another loss in the second quarter due to market volatility in its investment sector.
Credit Suisse, which was already in the red in the first quarter due to a larger-than-expected loss last year, said market conditions had worsened and “have remained challenging”.
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Russia’s invasion of Ukraine, monetary tightening by central banks and the end of Covid-linked stimulus measures have caused “heightened market volatility”, weak customer flows and clients lowering their debts, the bank said.
“The impact of these conditions, together with continued low levels of capital markets issuance and the widening in credit spreads, have depressed the financial performance of this (investment bank) division in April and May,” it said in a statement.
The bank has now issued profit warnings for three quarters in a row.
Credit Suisse has been working hard to reduce risks after a string of setbacks.
It was rocked in 2021 by the collapses of financial services businesses Greensill and Archegos, which cost the bank billions of dollars.
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