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Credit Suisse issues fourth-quarter profit warning as legal costs rise


Credit Suisse logo on the window of Credit Suisse Group AG’s Zurich branch.

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Credit SuisseIncreased litigation provisions are expected to have a negative impact on its fourth quarter earnings, it was announced Tuesday.

A charge in the amount of 500 million Swiss francs (or $545 million) was announced by the Swiss bank. This is estimated to drive its earnings below breakeven.

After a string of scandalous incidents that rocked the bank over recent years, this profit warning is now. After violating Covid-19 quarantine regulations, Antonio Horta Osorio, the Chairman of the Bank, resigned this month.

Credit Suisse Group (Group) announced today that litigation provisions of CHF 500 million will negatively impact the reported profit for the fourth quarter 2021, which is partially offset with gains from real estate sales of CHF 250 million.” The bank made this announcement in a Tuesday trading update.

“These litigation provisions are incurred in relation to a number cases where the Group more proactive pursued settlements. These primarily relate legacy litigation matters from investment banking.

Credit Suisse said that it is likely to lead to a reported pre-tax income for the Group, which will be approximately breakeven for its fourth quarter in 2021.

Credit Suisse plans to release fourth-quarter results February 10, 2010.