Credit Suisse reports quarterly loss, reshuffles management team as litigation costs bite

A sign above the entrance to the Credit Suisse Group AG headquarters in Zurich, Switzerland, on Monday, Nov. 1, 2021.

Credit Suisse reported a net loss for the first quarter of 2022, as the Swiss lender struggles with litigation costs and the aftermath of the Russia-Ukraine war.

After sending out a profit warning last week, the net loss for the quarter was almost 300 million Swiss Francs. The Swiss bank said that Russia-related losses were 206 million Swiss Francs. There was a hit of 155 million Swiss Francs related to the Archegos scandal.

Our operating expenses were higher year on year, driven in particular by higher previously reported litigation expenses, as we continued our proactive approach to resolving litigation matters. The reported operating expenses were up 26%.

The bank made changes to its executive board. The chief financial officer is leaving the bank. He will stay in his current position until a replacement is found.

Helman Sitohang is stepping down as CEO of the Asia-Pacific region and Romeo Cerutti is retiring from his group general counsel role. The CEO of Europe, Middle East and Africa will be taking over in October.

There were other highlights for the quarter.

• Revenues dropped 42% from a year ago to 4.4 billion Swiss francs.
• Return on tangible equity, a measure of bank profitability, was 2.6% — unchanged from a year ago.
• CET 1 ratio, a measure of bank solvency, was 13.8% versus 12.2% a year ago.

Wednesday's earnings came after steep losses at the end of 2021. Antonio Horta-Osorio resigned as its chairman after violating Covid-19 rules.

The investment banking division of the bank suffered a lot of damage due to its involvement with the collapsed investment firm Archegos Capital.

It posted a net loss of 1.57 billion Swiss Francs for the whole of 2021, well below market expectations. The stock has fallen since the beginning of the year.

CNBC's Elliot Smith contributed to the article.