Credit Suisse’s legal headaches cost the bank another $700 million


Its shares were indicated 2.8% lower in premarket activity.

It said provisions relating to a number of previously disclosed legal matters, all of which originated more than a decade ago, would rise by around 600 million Swiss francs to total approximately 700 million francs ($736 million).

Credit Suisse pushes back on reports of controversial accounts

This came after a Bermuda court last month ruled Georgia’s former prime minister and his family were due damages “substantially in excess of $500 million” from Credit Suisse’s local life insurance arm as a result of fraud.

In earnings due on April 27, the group said it “would expect to report a loss as a consequence of this increase in reserves,” without being more specific.

Its exposure to the impact of Russia’s invasion of Ukraine would adversely affect results by an aggregate 200 million francs in negative revenue and provisions for credit losses.

Its first-quarter results will also include previously flagged losses of approximately 350 million francs relating to a fall in the value of its 8.6% holding in Allfunds Group, it said.

Underlying results had been adversely impacted by a reduction in capital market issuances and by lower business activity, it added.

These losses would be partially offset by a recovery in provisions of approximately 170 million francs in respect of claims against collapsed investment fund Archegos and by real estate gains of around 160 million francs, it said.

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