Credit Suisse Forecasts Fourth Quarter Loss on Higher Provisions

Credit Suisse expects a net loss in the fourth quarter after increasing its provisions for a long-running dispute in the U.S by $850 million, according to CNBC. The bank has already set aside $300 million for the decade-long dispute on U.S residential mortgage-backed security (RMBS).

• Credit Suisse believes it has strong grounds for appeal despite setting aside $300 million for the settlement, with the figure expected to rise.
• The bank’s December trading run at levels similar to those outlined at its investor day on December 15
• The investment bank had stronger wealth management business year over year, particularly in Asia, which offset the translational effect of a robust Swiss franc and pressure on its interest income.
• Credit Suisse reported a net profit of 852 million Swiss francs or $962.28 million in the fourth quarter of 2019 and is expected to announce the fourth-quarter earnings on February 18
• The investment bank continued to perform well, with fourth-quarter dollar revenue rising by more than 15% compared with a year earlier.

Credit Suisse stock is currently declining. CSGN: SWX is down 2.95%