The Strategist

Credit Suisse shares fall 9% after bank reports high legal costs

02/11/2022 - 07:09

Shares of Swiss bank Credit Suisse fell 9.29 percent Thursday, Feb. 10, after it reported a loss in 2021 caused by increased provisions for litigation.

The bank's shares were at $9.08 a share at the close of trading and lost nearly a dollar in value, rising to $9.1 in the post-market. The bank's stock has fallen more than 27 percent in the past 12 months, CNBC noted.

Credit Suisse announced Thursday, Feb. 10, that it had posted a loss for 2021 after a difficult year for the bank led to a significant increase in its litigation reserves, CNBC reports. The net loss for the full year was 1.57 billion Swiss francs ($1.7 billion). Wall Street analysts polled by Refinitiv had expected an annual loss of 377.95 million Swiss francs ($408 billion). 

The bank said it needed "major litigation reserves" of 1.1 billion Swiss francs ($1.9 billion) in 2021. In a report, CEO Thomas Gottstein acknowledged that 2021 was "a very challenging year" for the institution. Credit Suisse has been embroiled in a series of high-profile scandals in recent years. The latest came in January, when its chairman, Antonio Horta-Osorio, resigned after quarantine violations over COVID-19. After his resignation, The Wall Street Journal found out that he was paying for empty private flights at the bank's expense.