Credit Suisse just released a financial report of the first quarter of this year, revealing the over net gain or loss of the company. The Swiss-based financial services company disclosed that it has experienced a net loss of CHF 252 million, which amounts to around $275 only during Q1 of 2021. Compared to last year’s number, the drop is significant. Credit Swiss blames the recent hedge fund scandal for its lackluster start of 2021.
Thomas Gottstein the CEO of the major institution confirmed the accusations that the net losses were caused by the hedge fund based in the US which resorted to a major scandal on an institutional level. He commented that “The loss we report this quarter, because of this matter, is unacceptable. Together with the Board of Directors, we have taken significant steps to address this situation as well as the supply chain finance funds matter.”
Nevertheless, the Swiss bank reported an impressive growth in both its investment banking businesses and its wealth management services. The organization saw a CHF 3.9 billion revenue in its investment banking division alone, or some $4 257 billion. This number is up an entire 80% since last year’s Q1 value.
The latter impressive gains, Credit Swiss credits to its Equity Sales and Trading as well as the firm’s Fixed Income Sales and Trading initiatives.