The company attributed the loss for the period to Archegos Capital Management issue, goodwill impairment and litigation provisions
Credit Suisse headquarters in Zürich, Switzerland. (Credit: Roland zh/Wikipedia)
Credit Suisse has reported a net loss of CHF2bn ($2.16bn) for the fourth quarter ended 31 December 2021, compared to a net loss of CHF353m ($380m) for the corresponding quarter the previous year.
The investment bank has reported net revenues of CHF4.6bn for the fourth quarter (Q4) of 2021, a 12% decrease compared to CHF5.2bn for the same period in 2020.
The company reported a loss before tax of CHF1.6bn for Q4 2021, compared to a loss before tax of CHF88m for the respective quarter of the previous year.
Its common equity tier 1 ratio (CET1 ratio) for the reported period was 14.4%, which increased compared to 12.9% for the same quarter in 2020.
The company attributed the loss for the period to Archegos Capital Management issue, goodwill impairment and litigation provisions.
Credit Suisse chief executive officer Thomas Gottstein said: “Our reported financial results were negatively impacted by the Archegos matter, the impairment of goodwill relating to the Donaldson, Lufkin & Jenrette (DLJ) acquisition in 2000 and litigation provisions, as we look to proactively resolve legacy issues.
“For the full year, we delivered a resilient underlying performance, with stable net revenues despite a significant reduction of risk-weighted assets and leverage exposure – especially in our IB division – since the end of 1Q21.
“During the last three quarters of the year, we ran the bank with a constrained risk appetite across all divisions as we took decisive actions to strengthen our overall risk and controls foundation and continued our remediation efforts, including on the Supply Chain Finance Funds matter, where our priority is to return cash to investors.”
Credit Suisse reported a net loss of CHF1.6bn for the year ended 31 December 2021, compared to a net income of CHF2.7bn for the full year 2020.
It has reported net revenues of CHF22.7bn for the year ended 31 December 2021, a 1% increase compared to CHF 22.3bn for the full year 2020.
The company’s loss before tax for the year ended 31 December 2021 was CHF522m, compared to a profit before tax of CHF3.5bn for the full year 2020.
The bank reported total operating expenses of CHF19bn for the year ended 31 December 2021, a 7% rise compared to CHF17.8bn for the full year 2020.