The increase in legal provisions stem from a ruling by a Bermuda court over damages awarded to a former Georgian prime minister. The case, which stemmed from more than a decade ago, adds to other costs the bank has had to provide for.

Credit Suisse today said that its reported earnings for the first quarter of 2022 will be reduced by its decision to boost litigation provisions by about SFr600 million ($630.7 million). The increase was caused by a number of previously disclosed legal issues stemming from more than a decade ago. 

The provisions' increase came after a Bermuda court ruled in March that former Georgian Prime Minister Bidzina Ivanishvili and his family were due damages "substantially in excess of $500 million" from Credit Suisse's local life insurance arm.

Total litigation provisions stand at around SFr700 million for the quarter, the Zurich-listed bank said today.

The group will announce its financial results on 27 April. 

Credit Suisse said it expects to report a loss because of its increase in provisions. It said its results are also affected by around SFr200 million following a hit to revenues and expected credit losses caused by Russia exposures.

“As noted in our 2021 Annual Report last month, our first quarter results will also include approximately SFr350 million of losses relating to the decrease in the value of our 8.6 per cent holding in the publicly listed Allfunds Group, and our underlying results have been adversely impacted by a reduction in capital market issuances and by lower business activity,” it said. “These losses will be partially offset by a recovery in provisions of approximately SFr170 million in respect of claims against Archegos and by real estate gains of approximately SFr160 million.” (Archegos is the failed hedge fund/family office business in New York to which Credit Suisse, and a number of other banks, were exposed.)