Daily Management Review

Credit Suisse warns of losses in Q2


Credit Suisse, a Swiss investment bank, expects a loss in the second quarter of 2022. The Financial Times reports on it, using the group's statement as evidence.

Ank Kumar
Ank Kumar
According to the report, Credit Suisse's investment banking sector suffered from market volatility as a result of the crisis in Ukraine, winding down of economic stimulus measures in the aftermath of the pandemic, and the tightening of monetary policy in reaction to rising global inflation.

The bank claimed it was experiencing a "continuing deleveraging of consumers," particularly in the Asia-Pacific region, as well as a low influx of new customers. Low equity and debt issuance, as well as widening credit spreads due to stricter credit policies in many countries, hurt the bank's investment business in April and May.

Credit Suisse announced additional cost-cutting actions against this backdrop. According to Bloomberg’s sources, one of them might be the start of a fresh round of layoffs. The bank may reduce the number of employees in all departments, including investment banking and asset management, at the same time in multiple regions of presence, according to the agency.

source: bloomberg.com