In the context of recent industry conferences and related trading commentary by our peers and the planned presentation by Group CEO Thomas Gottstein at the Goldman Sachs European Financials Conference 2022 on Thursday, June 9, 2022, Credit Suisse Group AG would like to provide a trading update on the second quarter 2022 to-date as follows.
Market conditions so far in the second quarter of 2022 have remained challenging, consistent with our published outlook statement of April 27, 2022. The combination of the current geopolitical situation following Russia’s invasion of Ukraine, significant monetary tightening by major central banks in response to the substantial increase in inflation and the unwind of COVID-related stimulus measures have resulted in continued heightened market volatility, weak customer flows and ongoing client deleveraging, notably in the APAC region. Within the Investment Bank, while our advisory revenues have been resilient and GTS revenues, compared to last year, have benefited from the higher volatility, albeit with an uneven performance, the impact of these conditions, together with continued low levels of capital markets issuance and the widening in credit spreads, have depressed the financial performance of this division in April and May and are likely to lead to a loss for this division as well as a loss for the Group in the second quarter of 2022. We would note that our reported earnings will also be affected by continued volatility in the market value of our 8.6% investment in Allfunds Group.
As we look forward to the second half, the year 2022 will remain one of transition for Credit Suisse. Given the economic and market environment, we are accelerating our cost initiatives across the Group with the aim of maximizing savings from 2023 onwards. We will provide further details at our upcoming Investor Deep Dive on June 28, 2022. We remain focused on the disciplined execution of our strategy, delivering on our regulatory remediation programs and placing risk management at the core of the bank. In doing so, we are focused on delivering best-in-class service and support to our clients, especially in this challenging market environment.
Finally, with respect to capital, we intend to operate with a Group CET1 ratio of around 13.5% in the near-term, in line with our 2024 objective of reaching a CET1 ratio of more than 14% pre the planned Basel III reforms.