Credit Suisse posts $2.2B loss to end ‘challenging year’

Feb 10, 2022, 3:36 AM | Updated: 6:08 am

GENEVA (AP) — Credit Suisse on Thursday reported a fourth-quarter loss of 2 billion Swiss francs ($2.2 billion) as the top-drawer Swiss bank wrapped up “a year of challenges” marked by bad bets on a hedge fund, set asides for legal costs and accounting changes due to its acquisition of a U.S. investment bank over 20 years ago.

The Zurich-based bank, the second largest in Switzerland’s active financial sector after rival UBS, said revenue in the fourth quarter fell 12%, to 4.6 billion francs, compared with a year earlier. It posted a pre-tax loss of 1.6 billion francs stemming in large part to goodwill linked to its acquisition of the Donaldson, Lufkin & Jenrette investment bank in 2000.

Credit Suisse said that loss also stemmed from “major litigation provisions” and continued fallout from a one-time charge of more than 4.4 billion francs announced last spring in connection with the default of U.S. hedge fund Archegos on margin calls.

The bank said “2021 has been a year of challenges.” It cited declining appetite for risk across the company last year, and a new strategy launched in November after a string of setbacks that have dented its reputation.

Shares of CS Group were down about 3.8% in late morning trading on the Six Swiss Exchange at 8.90 francs, though up from earlier lows after the start of trading.

This week, Swiss federal criminal court has been hearing charges that Credit Suisse failed to do enough to stop money laundering linked to drug trafficking by a Bulgarian criminal group, which employed a wrestler who once hauled millions in currency by car to Switzerland.

The case centers on a former bank manager and two members of the criminal ring accused of being involved in wrongdoing reportedly between 2004 and 2008.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

In this photo released on Thursday, Aug. 11, 2022, by the Iranian Foreign Ministry, Foreign Ministr...
Associated Press

Iran denies being involved in attack on Salman Rushdie

DUBAI, United Arab Emirates (AP) — An Iranian government official denied on Monday that Tehran was involved in the assault on author Salman Rushdie, in remarks that were the country’s first public comments on the attack. The comments by Nasser Kanaani, the spokesman of Iran’s Foreign Ministry, come over two days after the attack on […]
1 hour ago
Associated Press

This Week: Walmart earns, Fed meeting minutes, US home sales

A look at some of the key business events and economic indicators upcoming this week: SPOTLIGHT ON WALMART Wall Street expects another mixed quarterly report card from Walmart. Analysts predict the nation’s largest retailer will report on Tuesday that its fiscal second-quarter earnings fell and its revenue rose compared with the same period last year. […]
1 hour ago
Anastasiia Aleksandrova, 12, right, sits with her grandmother, Olena, at their home in Sloviansk, D...
Associated Press

Boredom, loneliness plague Ukrainian youth near front line

SLOVIANSK, Ukraine (AP) — Anastasiia Aleksandrova doesn’t even look up from her phone when the thunder of nearby artillery booms through the modest home the 12-year-old shares with her grandparents on the outskirts of Sloviansk in eastern Ukraine. With no one her age left in her neighborhood and classes only online since Russia’s invasion, video […]
1 day ago
A person wearing a protective mask walks past an electronic stock board showing Japan's Nikkei 225 ...
Associated Press

Asian shares mixed after China cuts key rate, Japan GDP up

BANGKOK (AP) — Shares were mixed in Asia on Monday after China’s central bank cut a key interest rate and Japan reported its economy picked up momentum in the last quarter. Tokyo and Sydney advanced while Hong Kong, Shanghai and Bangkok fell. U.S. futures edged lower early Monday, while oil prices declined. The People’s Bank […]
1 day ago
A person wearing a protective mask walks past an electronic stock board showing Japan's Nikkei 225 ...
Associated Press

Asian shares mixed after China cuts key rate, Japan GDP up

BANGKOK (AP) — Shares were mixed in Asia on Monday after China’s central bank cut a key interest rate and Japan reported its economy expanded at a faster pace in the last quarter. Tokyo and Sydney advanced while Hong Kong, Shanghai and Bangkok fell. U.S. futures edged higher Monday while oil prices declined. The People’s […]
1 day ago
FILE - Farmer John Hawk looks over his land as his seed onion fields are watered in Holtville, Cali...
Associated Press

Deadline looms for drought-stricken states to cut water use

SALT LAKE CITY (AP) — Banks along parts of the Colorado River where water once streamed are now just caked mud and rock as climate change makes the Western U.S. hotter and drier. More than two decades of drought have done little to deter the region from diverting more water than flows through it, depleting […]
1 day ago

Sponsored Articles

...
Mayo Clinic Orthopedics and Sports Medicine

Why your student-athlete’s physical should be conducted by a sports medicine specialist

Dr. Anastasi from Mayo Clinic Orthopedics and Sports Medicine in Tempe answers some of the most common questions.
...
Dr. Richard Carmona

Great news: Children under 5 can now get COVID-19 vaccine

After more than two years of battle with an invisible killer, we can now vaccinate the youngest among us against COVID-19. This is great news.
...
CANVAS ANNUITY

Best retirement savings rates hit 4.30%

Maximize your retirement savings with guaranteed fixed rates up to 4.30%. Did you know there is a financial product that can give you great interest rates as you build your retirement savings and provide you with a paycheck for life once you retire? It might sound too good to be true but it is not; this product is called an annuity.
Credit Suisse posts $2.2B loss to end ‘challenging year’