A Credit Suisse logo in the window of a Credit Suisse Group AG bank branch in Zurich, Switzerland.
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Credit Suisse announced on Tuesday that its fourth-quarter earnings are set to be “negatively impacted” by increased litigation provisions.
The Swiss bank said a charge of roughly 500 million Swiss francs ($545 million) is expected to push its earnings to breakeven.
The profit warning comes after a series of high-profile scandals that have rocked the bank in recent years. Most recently, Chairman Antonio Horta-Osorio resigned earlier this month after violating Covid-19 quarantine rules.
“Credit Suisse Group (Group) today announced that the reported profits for the fourth quarter 2021 will be negatively impacted by litigation provisions of approximately CHF 500 million, partly offset by gains on real estate sales of CHF 225 million,” the bank said in a trading update on Tuesday.
“These litigation provisions have been incurred in respect of a number of cases where the Group has more proactively pursued settlements and primarily relate to legacy litigation matters from our investment banking business.”
Credit Suisse added that this is expected to result in a “reported pre-tax income/(loss) for the Group of approximately breakeven for the fourth quarter 2021.”
Credit Suisse is scheduled to report fourth-quarter results on Feb. 10.
