Credit Suisse issues profit warning caused by jump in legal costs

The bank, beset by a string of controversies, has put aside an extra 600m Swiss francs for unspecified cases.

Credit Suisse has announced it is likely to report a first-quarter loss owing to a jump in legal costs, as the beleaguered bank tries to draw a line under a string of scandals.

The Swiss lender issued the profit warning before its scheduled earnings report next week, saying it would be putting aside an extra 600m Swiss francs (CHF) (£485m) after “developments in a number of previously disclosed legal matters” that started more than a decade ago.

The bank said it “would expect to report a loss as a consequence of this increase in reserves”.