(Bloomberg) — Credit Suisse Group AG said it will book more charges for legal matters in the fourth quarter and warned of outflows in its key wealth business as it closes out a year marred by scandals and turmoil at the top.
The lender will set aside 500 million francs ($546 million) for litigation stemming primarily from its investment banking business, which will post a loss in the period, Switzerland’s second-biggest bank said in a statement Tuesday. The key wealth business saw net outflows as client activity slowed globally and in Asia.
The performance issues and additional charges cap a year that has seen the lender reel from the collapse of Archegos Capital Management and Greensill Capital. A reboot under star banker Antonio Horta-Osorio has been thrown into doubt after he was ousted as chairman nine months into his role for breaching quarantine rules.
Read more: Credit Suisse’s Fix-It Banker Lost His Standing as a Role Model
Credit Suisse already warned in November that it will post a net loss on the back of a 1.6 billion-franc impairment tied to its restructuring. The new charges will further weigh on results, though the bank said it expects to break even on a pretax level in the fourth quarter.
The new provisions come from a “number of cases where the Group has more proactively pursued settlements,” Credit Suisse said Tuesday, without giving detail on what litigation is covered by the charge.
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
