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Credit Suisse
on Thursday said it has market risk exposure to Russia of SFr848 million ($914 million) but added it “is not significant,” as the Swiss Bank sought to reassure investors about the impact of Moscow’s invasion of Ukraine on its business.
The year-end exposure included derivatives and financing exposures in its investment derivatives and financing exposures in its investment bank, trade finance exposures in its Swiss business and loans in its wealth business, the Swiss bank disclosed in its annual report.
Net assets held in its Russia subsidiaries, which employ 125 people in the country across wealth management, investment banking and support functions, totaled CHF195 million ($210 million) as of Dec. 31, while it didn’t have material credit risk exposures to Ukraine or Belarus,
Credit Suisse
said.
The bank said it had “minimal” total credit exposures toward specifically sanctioned individuals in its wealth management division and that its Russia market risk exposure to the country as of Wednesday wasn’t significant.
“In purely financial terms, we have reviewed our positions and believe that the bank’s exposure in relation to Russia is well-managed, with appropriate systems in place to address associated risks,” Thomas Gottstein, Credit Suisse chief executive said.
The bank said it is premature to estimate the impact of the war in Ukraine on the global economy, markets and its clients’ risk appetite.
“However, in the short term, the resultant increase in trading and hedging business activity is expected to be offset by a reduction in capital market issuances due to the rise in volatility as well as by higher credit provisions,” it said.
American depositary shares of Credit Suisse (ticker:CS) fell 1.69% in the premarket on Thursday. The stock is down 20.23% in the year to date.
Write to Lina Saigol at [email protected]
