[ad_1]
© Reuters. FILE PHOTO: The brand of Swiss financial institution Credit score Suisse is seen at its headquarters on the Paradeplatz sq. in Zurich, Switzerland October 1, 2019. REUTERS/Arnd Wiegmann
By Michael Shields and Brenna Hughes Neghaiwi
ZURICH (Reuters) – Credit score Suisse (SIX:) froze 10.4 billion Swiss francs ($10.63 billion) of rich shoppers’ property within the first quarter beneath sanctions imposed in reference to Russia’s invasion of Ukraine, the financial institution’s monetary report confirmed on Thursday.
The Swiss financial institution’s monetary report gave extra particulars of its first-quarter outcomes, which had been initially printed final week.
“In 1Q22, CHF 10.4 billion of property beneath administration had been reclassified to property beneath custody as a result of imposed sanctions,” Credit score Suisse stated of its wealth administration division.
The monetary report confirmed {that a} 10.4 billion franc impression on the financial institution’s wealth administration property associated to property frozen resulting from sanctions.
The financial institution additionally stated Russian shoppers now held lower than 4% of property beneath administration in its wealth administration companies.
Final week, Credit score Suisse had reported a first-quarter internet lack of 273 million Swiss francs, dented by internet litigation provisions of 703 million francs in addition to a 206 million franc hit associated to the Ukraine battle.
The monetary report printed on Thursday confirmed gross impaired loans had risen by 230 million francs from end-2021 in wealth administration.
Credit score Suisse stated this was “primarily pushed by aviation and yacht finance, lombard lending, export finance and European mortgages, partially offset by a lower in ship finance.”
“The rise in impaired loans included opposed impacts from Russia’s invasion of Ukraine and associated sanctions,” the financial institution stated.
Credit score Suisse stated it was “repeatedly assessing the impression of sanctions already imposed, Russian authorities countermeasures and potential future escalations, on our exposures and consumer relationships”.
The financial institution additionally highlighted China’s strict COVID-19 lockdowns which have intensified worries about extra disruptions to international provide chains and upward strain on inflation.
Credit score Suisse stated liquidity and solvency considerations continued in China’s property growth sector, with probably opposed impacts on China’s financial system and on international markets.
“We intently monitor the danger administration implications of those developments on our lombard mortgage portfolio in China, our buying and selling and lending e-book exposures to Chinese language native government- and state-owned enterprises in addition to the accelerating default development within the onshore company debt market.”
The financial institution specified that it anticipated a Bermuda court docket case to value about $600 million.
A Bermuda court docket in March dominated that former Georgian Prime Minister Bidzina Ivanishvili and his household are due damages “considerably in extra of $500 million” from Credit score Suisse’s native life insurance coverage arm. The financial institution has stated it intends to attraction the decision.
($1 = 0.9784 Swiss francs)
[ad_2]
Source link
