{"id":13271,"date":"2022-02-11T16:35:17","date_gmt":"2022-02-11T08:35:17","guid":{"rendered":"https:\/\/newmalaysiatimes.com\/?p=13271"},"modified":"2022-02-11T16:35:18","modified_gmt":"2022-02-11T08:35:18","slug":"credit-suisse-ends-2021-with-big-loss","status":"publish","type":"post","link":"https:\/\/newmalaysiatimes.com\/?p=13271","title":{"rendered":"Credit Suisse ends 2021 with big loss"},"content":{"rendered":"\n

LONDON, February 11 — Credit Suisse plunged into the red in 2021, shaken by the meltdowns at Greensill and Archegos that resulted in Switzerland\u2019s second-biggest bank posting heavy losses Thursday.<\/p>\n\n\n\n

While other Swiss banks registered solid results for last year, Credit Suisse reported a net loss of nearly 1.6 billion Swiss francs (US$1.7 billion, 1.4 billion euros).<\/p>\n\n\n\n

Provisions for litigation and asset impairment resulting from its strategic program unveiled in November dragged down results.<\/p>\n\n\n\n

The bank had recorded a profit of nearly 2.7 billion Swiss francs the year before.<\/p>\n\n\n\n

At the end of January, Credit Suisse warned that its 2021 results would suffer from the provisions for litigation which were added to the heavy depreciation of assets resulting from its strategic program to restore the bank.<\/p>\n\n\n\n

\"Credit<\/figure><\/div>\n\n\n\n

But the loss of two billion Swiss francs in the fourth quarter alone nonetheless proved to be heavier than expected, wiping out dwindling profits from the previous quarters.<\/p>\n\n\n\n

Its quarterly revenues were also below forecasts, falling 12% to 4.6 billion Swiss francs, against an expected 5.1 billion.<\/p>\n\n\n\n

Credit Suisse\u2019s income has declined, particularly in its investment bank arm, with the bank attributing the contraction chiefly to the disengagement from services to hedge funds \u2013 which had been at the heart of bank\u2019s Archegos woes.<\/p>\n\n\n\n

\u201c2021 was a very challenging year for Credit Suisse,\u201d chief executive Thomas Gottstein said in a statement.<\/p>\n\n\n\n

\u201cOur 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.\u201d<\/p>\n\n\n\n

He said the bank would focus on the \u201cdisciplined execution\u201d of a new strategic program unveiled in November.<\/p>\n\n\n\n

Year of woes<\/strong><\/p>\n\n\n\n

In March 2021, the bank was rocked by the collapse of the British financial firm Greensill, in which some US$10 billion had been committed through four funds, and then by the implosion of the US fund Archegos, which cost it more than US$5 billion.<\/p>\n\n\n\n

In October, it was also fined US$475 million by the US and British authorities for its loans to state-owned companies in Mozambique.<\/p>\n\n\n\n

Antonio Horta-Osorio was appointed Credit Suisse chairman in April, pledging to put better risk management at the heart of the bank\u2019s culture.<\/p>\n\n\n\n

But revelations that he broke Switzerland\u2019s Covid-19 quarantine rules in December led to him resigning last month, deepening the bank\u2019s troubles.<\/p>\n\n\n\n

The bank said 2022 would be a \u201ctransition year\u201d, with results expected to be adversely affected by restructuring costs and higher compensation costs.<\/p>\n\n\n\n

The bank commissioned a report on Archegos, which was published at the end of July.<\/p>\n\n\n\n

However, it does not intend to release a report concerning funds linked to Greensill.<\/p>\n\n\n\n

\u201cIn light of the ongoing recovery process and the legal complexities of the matter, there is no intention by the board to publish the report,\u201d<\/em> Credit Suisse said.<\/p>\n\n\n\n

The board has received the report and given the reputational impact, \u201cactions have been taken against a number of individuals where the board deemed it was appropriate\u201d,<\/em> the bank said.<\/p>\n\n\n\n

NMT<\/a> as reported by AFP<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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