ZURICH, Feb 10 — Credit Suisse plunged into the red in 2021, dragged down by asset impairment and provisions for litigation during a turbulent year, Switzerland’s second-biggest bank announced today.

Rocked by the bankruptcy of the British financial firm Greensill and the implosion of the US fund Archegos, the banking giant finished 2021 with a net loss of nearly 1.6 billion Swiss francs (RM7.1 billion).

It had recorded a profit of nearly 2.7 billion Swiss francs the year before.

At the end of January, Credit Suisse warned that its 2021 results would suffer from the provisions for litigation which were added to the heavy depreciation of assets resulting from its strategic programme to restore the bank.

"2021 was a very challenging year for Credit Suisse,” chief executive Thomas Gottstein said in a statement.

"Our reported financial results were negatively impacted by the Archegos matter, the impairment of goodwill relating to the Donaldson, Lufkin & Jenrette (DLJ) acquisition in 2000 and litigation provisions, as we look to proactively resolve legacy issues.”

He said the bank would focus on the "disciplined execution” of a new strategic programme unveiled in November.

The bank commissioned a report on Archegos, which was published at the end of July.

However, it does not intend to release the report concerning funds linked to Greensill, into which some US$10 billion (RM41 billion) had been committed.

"In light of the ongoing recovery process and the legal complexities of the matter, there is no intention by the board to publish the report,” Credit Suisse said.

The report was commissioned by the law firm Walder Wyss and produced with the support of the audit and consulting firm Deloitte Touche Tohmatsu.

The report is finished and its conclusions were sent to the Credit Suisse board and FINMA, the Swiss Financial Market Supervisory Authority regulatory body.

Given the reputational impact, "actions have been taken against a number of individuals where the board deemed it was appropriate”, the bank said.

Credit Suisse’s troubles deepened last month when chairman Antonio Horta-Osorio resigned after violating Switzerland’s Covid-19 quarantine protocols. — AFP