Credit Suisse posts larger-than-expected losses in the second quarter

Credit Suisse posts larger-than-expected losses in the second quarter

Credit Suisse posted a 1.59 billion Swiss franc ($1.65 billion) loss in the second quarter on Wednesday, below market expectations, as it announced the departure of its CEO. .

Analysts had expected a net loss of 206 million francs, according to an average of 19 estimates compiled by the bank, which had warned in June of a new quarterly loss due to volatility and weak customer flows affecting its banking business. investment.

Its CET1 equity ratio stood at 13.5% of risk-weighted assets, reaching its short-term target of 13.5% and almost the 13.6% expected by the market. This figure is lower than its objective for 2024 of exceeding 14% and its CET1 ratio in the first quarter, of 13.8%.

“Our results for the second quarter of 2022 are disappointing, especially at the Investment Bank, and were also affected by increased litigation provisions and other adjusting items,” outgoing CEO Thomas Gottstein said in the statement. .

Credit Suisse has named asset management expert Ulrich Koerner as its new CEO, a further sign of change at the Swiss bank, which on Wednesday announced a wide-ranging strategic review as it seeks to recover from a series of scandals.

Pressure has mounted on Gottstein for months as scandals and losses racked up during his two-year tenure have sent shares plunging and investors angry.

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