/Credit Suisse earnings Q1 2021
Credit Suisse earnings Q1 2021

Credit Suisse earnings Q1 2021

A Credit Suisse logo in the window of a Credit Suisse Group AG bank branch in Zurich, Switzerland.

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LONDON — Credit Suisse reported Thursday a net loss of 252 million Swiss francs ($295 million) at a time of increased pressure on the bank.

The bank said the loss reflected a “significant charge with respect to the US-based hedge fund matter in 1Q21, offsetting positive performance across wealth management and investment banking.”

The Swiss lender warned of heavy losses earlier this month after a scandal involving Archegos Capital, a U.S. based hedge fund, which collapsed after taking on too much risk. Credit Suisse said it took a hit of 4.4 billion Swiss francs as a result.

In addition, investment bank CEO Brian Chin and chief risk and compliance officer, Lara Warner, both stepped down. The executive board decided to waive bonuses for the 2020 year, and also cut the proposed dividend.

Regulators in the U.S. and Switzerland have asked Credit Suisse for more information on the collapse of Archegos, according to the Wall Street Journal.

In March, Credit Suisse also adjusted its asset management business and suspended bonuses after the collapse of Greensill Capital, a British supply chain finance firm.

This is a developing news story and will be updated shortly.