Credit Suisse to add $850m to US provisions

Credit Suisse to add $850m to US provisions

Credit Suisse is to add $850m to its provisions for litigation over residential mortgage-backed securities, bringing the total set aside for these cases to more than $1.1bn and pushing the bank to a fourth-quarter loss.

The move follows a ruling in November in an RMBS case involving financial services group MBIA that could result in a $680m judgment against Credit Suisse.

The Swiss bank said on Friday that it believes it has strong grounds for appeal in the case.

Credit Suisse expects to take an impairment charge against the value of its holding in York Capital Management, the US alternative investment group which is winding down its European hedge fund business.

Trading in the final month of 2020 was in line with the performance outlined last month, the bank said in a statement on Friday. Revenues at its investment bank in the fourth quarter were 15 per cent ahead of last year.

Credit Suisse plans to push ahead with a share buyback scheme that will return up to SFr1.5bn to shareholders in 2021.

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