Credit Suisse 1Q loss includes $214M hit linked to Russia

GENEVA (AP) - Credit Suisse is reporting a pretax loss of 428 million Swiss francs ($443 million) and a plunge in revenues in the first quarter, marked in part by a loss of 206 million Swiss francs (about $214 million) linked to Russia's invasion of Ukraine.

The top-tier Swiss bank, which has faced a number of difficulties in recent months, also announced Wednesday a further shake-up of its executive ranks including the planned departure of its longtime chief financial officer, David Mathers.

Credit Suisse reported net revenues of 4.4 billion francs in the first quarter, a drop of 42% from a year earlier in the period, amid what CEO Thomas Gottstein said were 'œvolatile market conditions and client risk aversion'ť so far in 2022, which he called a 'œtransition year'ť for the bank.

The first quarter pretax loss of 428 million francs compared to a pretax loss of 757 million francs in the first quarter of 2021.

Revenue fell sharply in both investment bank and wealth management operations in the quarter, while revenue slid 10% in asset management operations.

Credit Suisse said it 'œactively managed'ť its exposure to Russia's invasion of Ukraine and said it has reduced by more than half its net credit exposure to Russia, now to 373 million francs. It said its exposure to Russian financial institutions has declined by two-thirds and a reduction of that exposure was continuing.

It said the net asset value of its Russian subsidiaries was 200 million francs, down 16 million francs from the end of last year.