Credit Suisse has capped one of the most tumultuous periods in the bank’s 166-year history by reporting a SFr2bn ($2.2bn) loss for the fourth quarter.
Switzerland’s second-largest lender warned on Thursday that 2022 would be a year of transition for the bank as it implemented a strategic plan that would lead to restructuring costs and a lower appetite for risk following several high-profile scandals.
The group said it would not publish a highly anticipated report into its failings over the collapse of Greensill Capital last year, which led to the closure of $10bn of supply-chain finance funds.
Credit Suisse said the report, which was carried out by Swiss law firm Walder Wyss and Deloitte, was completed and had been shared with the board and Finma, the Swiss regulator. But it added that it would not be made public as it would affect the bank’s ability to recover losses and would affect potential lawsuits.
Thomas Gottstein, Credit Suisse chief executive, said: “During the last three quarters of the year, we ran the bank with a constrained risk appetite across all divisions as we took decisive actions to strengthen our overall risk and controls foundation and continued our remediation efforts, including on the supply chain finance funds matter, where our priority is to return cash to investors.”
The bank’s net revenues declined 12 per cent in the final quarter compared with a year earlier, as revenue at its investment bank fell 31 per cent. Meanwhile, operating expenses rose 20 per cent. The bank reported a SFr522m loss for the full year.
Credit Suisse’s year was marked by the suspension of $10bn of investment funds linked to collapsed finance group Greensill, a $5.5bn trading loss tied to family office Archegos, a number of executive departures, lawsuits and a police raid, and capped by the abrupt resignation of chair António Horta-Osório last month over Covid-19 quarantine breaches.
Last month Credit Suisse warned its investment bank would report a loss for the fourth quarter on the back of a slowdown in trading revenues and a SFr500m provision to cover litigation settlements.