Red Numbers for Credit Suisse Again After Blow Due to War Ukraine

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Credit Suisse is once again in the red, partly due to the war in Ukraine. Due to the conflict, the Swiss financial group has announced that it is dealing with a financial blow of 200 million francs, converted into almost 195 million euros.

 

Once again, the bank is set aside a lot of money for legal proceedings about scandals that have been going on for some time.

Credit Suisse decided in March to stop issuing new loans in Russia because of the war, a step that many parties in the financial sector have taken. However, the bank is probably not the only financial group to experience losses due to the Russian invasion of Ukraine. For example, Société Générale recently announced its withdrawal from Russia by selling its stake in Rosbank. As a result, the French bank has to write off billions of euros.

The exact results of Credit Suisse in the first quarter will not be released until next week. However, the company has already indicated that it is counting on a loss. That means another setback for the bank, which already issued several profit warnings last year and was almost 1.6 billion francs short over the entire 2021.

Credit Suisse has previously deliberately taken a “more proactive” approach when it comes to resolving issues from the past, with the bank moving faster to settle settlements. However, credit Suisse’s investment bank, which acts as an intermediary or advisor in complex financial deals, has been involved in debacles surrounding the collapse of investment fund Archegos and finance company Greensill Capital. There is also a fraud-related case in Bermuda.

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