Credit Suisse Group has said that its profits for the Q4 of 2021 will be negatively impacted by litigation provisions.
The Swiss lender said that the legal cases have incurred costs of approximately $545m (CHF500m).
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Credit Suisse’s warning comes after a series of legal tussles that the bank has been involved in the recent times.
In its trading update, the Swiss lender said that “the reported profits for the fourth quarter 2021 will be negatively impacted by litigation provisions of approximately $545m (CHF500m), partly offset by gains on real estate sales of $244.68m (CHF225m).
“These litigation provisions have been incurred in respect of a number of cases where the Group has more proactively pursued settlements and primarily relate to legacy litigation matters from our investment banking business.”
Credit Suisse expects this to impact the reported pre-tax income/(loss) of approximately breakeven for the Q4 of 2021 for the company.
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By GlobalDataThe lender also pointed out that its investment bank and wealth management businesses will also record a decline in their trading revenues.
The fall was attributed to both a seasonal slowdown and a “reversion to more normal trading conditions” after the high volumes seen through 2020 and 2021.
The Swiss bank will announce its Q4 and full-year 2021 financial results on 10 February 2022.
Earlier this month, Credit Suisse chairman António Horta-Osório stepped down from his position after he broke Covid-19 quarantine rules.
