Credit Suisse warns of fourth-quarter loss

The problems keep building for Credit Suisse, with the lender warning it will post a fourth-quarter loss.

Tuesday's (January 25) update blamed new legal costs and a slowdown in its trading and wealth management divisions.

The bank said it is on track for an overall Q4 loss of around $1.75 billion.

Credit Suisse said its investment arm was hit by lower transaction-based revenue.

It pointed to a downturn in Asia, plus a return to more normal trading conditions following a bumper couple of years.

It is also due to make a fresh legal payment of about $544 million to settle legacy cases related to its investment bank.

The lender is trying to change a freewheeling culture that has cost it billions and led to a series of scandals.

It wants to rein in its investment bankers and instead look after the fortunes of the world's rich.

The firm also wants to reform its risk management culture.

But things got off to a bad start this year when chairman Antonio Horta-Osorio was forced to resign for breaching covid protocols.