Credit Suisse records first quarter loss

by Richard Kilner

Story link: Credit Suisse records first quarter loss

Today Credit Suisse, Switzerland’s second largest bank, posted a quarterly loss of $2.1bn.

The net loss, the first for five years, was larger than had been predicted.

The continuing effects of the subprime mortgage crisis are being cited as the primary reason for the loss, with $5.3bn in writedowns for loans and securities being recorded.

Accordingly, the bank has slashed its exposure to risky loans and mortgages in an effort to bolster its position for the future.

Credit Suisse’s homegrown rival, UBS, has also been hit by the recent turbulence in the financial world, and to a larger degree than Credit Suisse.

However, despite the loss the firm’s private banking remains profitable (although profits have fallen 8%).

Asset management, by contrast, slumped from the black to the red this quarter, seeing a loss of over $400m.