Credit Suisse shareholders will agree with the bank that 2022 is a year of transition. Opinions on the destination will vary. More so after Wednesday’s warning that a second-quarter loss is now likely. An awkward investment banking division is in the spotlight after Credit Suisse’s embroilment in the Archegos prime broking and Greensill lending scandals. Prosaic poor performance is the problem this time.
The Swiss lender appears to be suffering from chaotic drift. The phenomenon previously afflicted Barclays, Deutsche Bank and Rolls-Royce. Unruly currents buffet the sufferer from crisis to crisis. Individually, each disaster may be deemed exceptional. Collectively, they point to successive leadership failures and an entitled culture among employees.
This time round, Credit Suisse’s investment bank has been beset by market conditions rather than toxic clients and collaborators. Soaring inflation and the war in Ukraine are hitting a shrunken topline largely derived from unfashionable rates and equities.