Credit Suisse has said that it may report a loss in the first quarter of the year due to a jump in legal provisions.
The litigation provisions are related to previously disclosed legal matters that originated more than a decade ago.
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It is expected to amount to nearly CHF600m ($629m), increasing the Swiss bank’s total litigation provisions for the quarter to around CHF700m.
The group is scheduled to report its first quarter earnings on 27 April.
Additionally, Credit Suisse anticipates that the ongoing Ukraine crisis and sanctions on Russia will impact its quarterly revenue.
In a statement, the Swiss bank said: “With regard to our exposure to the impact of Russia’s invasion of Ukraine both on our counterparties and on our credit risks, our results will be adversely affected by an aggregate of approximately CHF200m of negative revenues and provisions for credit losses.”
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By GlobalDataThe first quarter results will also include around CHF350m of losses incurred due to the fall in the value of its 8.6% holding in the publicly listed Allfunds Group.
It further added that underlying results were hit by a reduction in capital market issuances and by lower business activity.
However, the company recovered around CHF170m in respect of claims against Archegos and gained CHF160m in real estate, both of which will partially offset the losses.
Last month, it was reported that Credit Suisse Group will not pursue new business in Russia in response to Moscow’s military invasion on Ukraine.
