Credit Suisse Posts a 29% YoY Decline in Net Revenues in Q2 2022

Credit Suisse, a Switzerland-based investment bank, has published its financial results for the second quarter of 2022 ended on the 30th of June, revealing a decline in net revenues due to challenging economic and market conditions.

During the quarter, the company reported a net loss of CHF 1.6 billion, compared to net income attributable to shareholders of CHF 253 million in 2Q21. When measuring this against the previous quarter, where net loss was CHF 273 million, second-quarter net loss has significantly increased.

Net revenues attributable to Credit Suisse for the period came in at CHF 3.6 billion, which is 17% lower than the net revenues of CHF 4.4 billion achieved in the first quarter of 2022. Compared to the same period in 2021, net revenues experienced a 29% decline in the quarter.

Further, Credit Suisse posts CET1 ratio of 13.5% and pre-tax loss of CHF 1.2 bn compared to a pre-tax income of CHF 813 million in 2Q21. the adjusted pre-tax loss for 2Q22 was CHF 442 million, down significantly compared to 2Q21.

"Our results for the second quarter of 2022 are disappointing, especially in the Investment Bank, and were also impacted by higher litigation provisions and other adjusting items. The bank's performance was significantly affected by a number of external factors, including geopolitical, macroeconomic and market headwinds. These challenging circumstances led to results which overshadow the strength of our leading client franchises in all four divisions of the ban,"Thomas Gottstein, Chief Executive Officer of Credit Suisse said.

"The urgency for decisive action is clear and a comprehensive review to strengthen our pivot to the Wealth Management, Swiss Bank and Asset Management businesses, supported by a fundamental transformation of our Investment Bank, is underway. Further, we have now launched a broader cost efficiency and digital transformation program to reduce our absolute cost base to less than CHF 15.5 bn in the medium term."