Credit Suisse: stock down on expected loss in Q2

(CercleFinance.com) - Credit Suisse said on Wednesday it expects to post a loss in the second quarter, citing continued "challenging" conditions in its core markets.


In a statement, it said that the current environment, marked by the war in Ukraine, monetary tightening by major central banks and inflationary pressures, had led to a sharp increase in volatility in financial markets.

Credit Suisse adds that this has been accompanied by weak inflows of new money from clients and even a desire to deleverage, particularly in Asia-Pacific.

Against this backdrop, its investment banking arm's performance deteriorated in April and May, leading the Swiss bank to anticipate a loss for the division in Q2.

Credit Suisse said that it now sees 2022 as a year of transition, which will see an acceleration of its cost-cutting efforts in light of current economic conditions.

The group says it plans to reveal more about its strategy at its next investor meeting, scheduled for 28 June.

Credit Suisse shares were down over 3.7% as trading began on Wednesday morning.



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