RTTNews | Jan 25, 2022 01:18AM EST

01:17 Tuesday, January 25, 2022 (RTTNews.com) - Swiss lender Credit Suisse Group (CS) Tuesday said it now expects approximately breakeven pre-tax result for the fourth quarter 2021.

The reported profits for the fourth quarter 2021 will be negatively impacted by litigation provisions of approximately 500 million Swiss francs. These will be partly offset by gains on real estate sales of 225 million francs.

The company said it sees breakeven before deduction of the already announced around 1.6 billion francs goodwill impairment, of which approximately 1.5 billion francs in the Investment Bank division and approximately 0.1 billion francs in the Asia Pacific division.

Regarding to underlying business results, the company said there is a reduction in transaction-based revenues in the Investment Bank and wealth management businesses.

The company sees a loss in the Investment Bank division for the fourth quarter, before the goodwill impairment.

In wealth management businesses, fourth-quarter net new assets will be modestly negative. The company noted that there has been a significant slowdown in transaction activity in the International Wealth Management and Asia Pacific divisions.

Year-end 2021 Group CET1 ratio is expected to exceed ambition of 14 percent, while year-end 2021 Tier 1 leverage ratio is expected to exceed 6 percent.

The company plans to provide a full update on fourth-quarter financial performance on February 10.

Read the original article on RTTNews ( https://www.rttnews.com/3256861/credit-suisse-sees-breakeven-pre-tax-result-in-q4-loss-in-investment-bank.aspx)

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