Bank says Bermuda judgment will cost them $600m
A Supreme Court judgment against a Bermuda subsidiary of banking giant Credit Suisse will cost them some $600 million, the bank said in its first-quarter financial report today.
The judgment relates to life insurance policies of a client of Credit Suisse Life Bermuda.
The life insurance subsidiary has been closed to new business and in wind-down for more than seven years and has no other material business that will be affected by this judgment, the bank has previously said.
In March, the court ruled in favour of former Georgian Prime Minister Bidzina Ivanishvili and his family, saying they were due damages of substantially more than $500 million from Credit Suisse's Bermuda life insurance unit.
The note came as the bank reported a first-quarter net loss of about $280 million.
Thomas Gottstein, chief executive officer of Credit Suisse Group AG said: “Our operating expenses were higher year on year, driven in particular by higher previously reported litigation expenses of 703 million Swiss francs for the quarter as we continued our proactive approach to resolving litigation matters.”
The bank also highlighted “the adverse impact of 206 million Swiss francs of losses related to Russia’s invasion of Ukraine.”
Mr Gottstein stated: “I am confident that we are well positioned to build a stronger and client centric bank that puts risk management at the core to deliver sustainable growth and value for investors, clients and colleagues.”