Credit Suisse Is Preparing For Major Decline Due To Its Bank Issues

For the fourth quarter, Credit Suisse’s investment bank warned that its loss would widen due to the mounting charges related to the investigations into its two biggest divisions. It would later post a loss in its fixed income and commodities division as it exits the business. Its wealth management unit saw its clients pull money during the fourth quarter. The bank’s performance issues and additional expenses during the year deepened its worst year since the 2008 financial crisis. They came after the collapse of two of its divisions and the departure of its CEO Thomas Gottstein.

Credit Suisse

Analysts expect the results to raise concerns about the management’s leadership. The bank’s near-term prospects are still poor. Credit Suisse had already warned that it would post a net loss for the year due to the restructuring charges. It expected to have no pre-tax income in the fourth quarter. The stock price of Credit Suisse fell 1.4% on Thursday, continuing its decline over the past year. The bank said it would set aside additional funds to cover the cost of settling legacy lawsuits from its investment banking division. These cases were mainly related to its real estate sales.