Credit Suisse Group AG announced on Wednesday, that the group is likely to face a loss in the second quarter, as a result of market uncertainty caused by the Ukraine conflict and monetary tightening policy by major central banks in response to rising global inflation.
Aside from the effects of the Russia-Ukraine conflict, Credit Suisse revealed that "the COVID-related stimulus measures have resulted in continued heightened market volatility, weak customer flows, and ongoing client deleveraging, notably in the APAC (Asia-Pacific) region." As a result, "low levels of capital markets issuance and the widening in credit spreads will lead to a loss" for the investment banking division as well as for the entire group in the fiscal year's second quarter.
The Group reported that its revenue in the first quarter declined by 42% on an annual basis to land at 4.41 billion Swiss francs (~$4.58 billion).
