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March 27, 2017

Credit Suisse loss deepens after settling mis-selling scandal

Credit Suisse has reported that it loss for 2016 and the fourth quarter of 2016 broadened than the originally reported figure after adding provisions to settle a residential mortgage-backed securities (RMBS) case with the National Credit Union Administration Board (NCUA).

By Verdict Staff

Credit Suisse has reported that it loss for 2016 and the fourth quarter of 2016 broadened  than the originally reported figure after adding provisions to settle a residential mortgage-backed securities (RMBS) case with the National Credit Union Administration Board (NCUA).

The bank said that the increase in litigation provisions by CHF300m due to the settlement led to an additional after-tax charge of CHF272m.

 The bank added that the adjustment increased the group’s 2016 net loss to CHF2.6bn for the fourth quarter of 2016 and CHF2.7bn for the financial year 2016, compared to a net loss of CHF5.8bn in the fourth quarter of 2015 and CHF2.9bn in 2015.

In February 2017, the bank originally reported a net loss of CHF2.3bn for the fourth quarter of 2016, and a net loss of CHF2.4bn for the year ended 31 December 2016.

The settlement also reduced the bank's CET1 ratio to 11.5% from 11.6% reported last month.

 The look-through CET1 leverage ratio stood at 3.2% at the end of 2016 after reflecting the charge, the bank said.

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