Credit Suisse Sees Loss At Groupwide Level And Investment Bank In Q2

(RTTNews) - Financial services provider Credit Suisse Group AG (CS), on Wednesday, said market conditions so far in the second quarter of 2022 have remained challenging, consistent with its published outlook statement of April 27, 2022.

Within the Investment Bank, while the company's "advisory revenues have been resilient and GTS revenues, compared to last year, have benefited from the higher volatility, albeit with an uneven performance, 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 division in April and May and are likely to lead to a loss for this division as well as a loss for the Group in the second quarter of 2022," said Credit Suisse.

Further, the company noted that its reported earnings will also be affected by continued volatility in the market value of its 8.6% investment in Allfunds Group.

Looking forward to the second half, the company stated that the year 2022 will remain one of transition for Credit Suisse. Given the economic and market environment, the company is accelerating its cost initiatives across the Group with the aim of maximizing savings from 2023 onwards.

The company intends to operate with a Group CET1 ratio of around 13.5% in the near-term, in line with its 2024 objective of reaching a CET1 ratio of more than 14% pre the planned Basel III reforms.