Financial News Press Release

Press Release

Credit Suisse will increase legal provisions and expects a loss in reported earnings for the first quarter 2022

Ad hoc announcement pursuant to article 53 LR

Credit Suisse Group AG (Group) announces today that its reported earnings for the first quarter of 2022 will be negatively impacted by a decision to increase litigation provisions relating to developments in a number of previously disclosed legal matters, all of which originated more than a decade ago, by approximately CHF 600 million, resulting in total litigation provisions for the quarter of approximately CHF 700 million.

The Group will announce its earnings for the first quarter of 2022 on Wednesday, April 27th, and would expect to report a loss as a consequence of this increase in reserves. With regard to our exposure to the impact of Russia’s invasion of Ukraine both on our counterparties and on our credit risks, our results will be adversely affected by an aggregate of approximately CHF 200 million of negative revenues and provisions for credit losses. As noted in our 2021 Annual Report last month, our first quarter results will also include approximately CHF 350 million of losses relating to the decrease in the value of our 8.6% holding in the publicly listed Allfunds Group, and our underlying results have been adversely impacted by a reduction in capital market issuances and by lower business activity. These losses will be partially offset by a recovery in provisions of approximately CHF 170 million in respect of claims against Archegos and by real estate gains of approximately CHF 160 million.