Legal fees of 757 million francs caused the second largest Swiss bank to incur a loss in the last three months of the year. Today, Thursday, Credit Suisse recorded a 22% drop in net profit for 2020
The bank recorded a net loss of 353 million Swiss francs ($ 392.79 million) in the fourth quarter, compared to expectations of a loss of 566 million francs in a bank survey of 18 analysts.
According to Arabnet, the poll was conducted before the bank settled an old case related to mortgage-backed securities in exchange for $ 80 million, less than what it had previously announced.
Wealth managers reaped abundant profits from booming trades and greater customer demand for advice during the COVID-19 pandemic, helping rivals UBS Group and Julius Baer Group to generate big profits. But Credit Suisse faced setbacks in its core business last year everywhere outside Asia.
and outside of Asia, only the Credit Suisse investment bank managed to make a profit again in 2020, as profits were negatively affected by higher expected losses in lending and unfavorable factors resulting from Negative interest rates and the rise of the Swiss franc.
excluding one-off gains that supported results in 2019 and negatively affected them in 2020, the bank said it would have achieved pre-tax earnings growth of 6% for the year.
