By Scott Kanowsky 

Investing.com – Credit Suisse Group AG (SIX) shares dropped sharply Wednesday after the Swiss bank said it would likely lose the entire group in the second quarter. This was despite “challenging market conditions” that led to weaknesses at the key investment banking segment.

According to the Swiss bank, volatility caused by the conflict in Ukraine and “significant” central bank tightening of monetary policy to combat rising inflation has had a significant impact on the unit. It also noted that the Covid-era stimuli measures have ended.

“[T]Credit Suisse issued a statement Wednesday saying that the conditions combined with low capital markets issuance levels and a widening of credit spreads had depressed financial performance for this division in April/May and were likely to result in a loss of the Group’s second quarter in 2022.”

According to Switzerland’s second largest lender, the volatility in Asia has resulted in weak client flows and deleveraging of clients.

However, the company didn’t specify what it expected to lose in its second quarter.

Credit Suisse had announced in April a plan for reorganizing its executive team. This is as the bank seeks to bounce back from several recent crises, which contributed to it suffering a loss.