April 22, 2021 at 05:29PM

While Credit Suisse Group AG posted a 31 percent year-over-year rise in net revenues for Q1 2021, the Swiss bank generated a loss for the period after absorbing a number of items that had a “considerable impact” on its reported results, according to management.

“Our results for the first quarter of 2021 have been significantly impacted by a CHF 4.4 bn [approximately $4.8 billion] charge related to a US-based hedge fund. The loss we report this quarter, because of this matter, is unacceptable. Together with the Board of Directors, we have taken significant steps to address this situation as well as the supply chain finance funds matter,” Credit Suisse Group AG CEO Thomas Gottstein said in an earnings press release.

However, Gottstein said that underlying financial performance for the quarter throughout each division was “strong, supported by solid results in Switzerland, and strong growth in APAC and investment banking.”

All in, Credit Suisse reported net revenues of 7.6 billion CHF (approximately $8.3 billion) on a net loss of CHF 252 million (approximately $275 million).

The news comes as Credit Suisse had to halt four Luxembourg-based funds that invested $10 billion in supply chain finance, adding to the fallout from the collapse of United Kingdom upstart Greensill Capital.

The second-biggest bank in Switzerland was a main funding source for the upstart, which was co-founded by Lex Greensill and Jason Austin.

In an investors’ note, Credit Suisse revealed a temporary suspension for the four funds, noting that the board came to the decision that it would be too challenging to set an accurate price for the supply chain-linked shares held by the four funds.

The four impacted funds are the Credit Suisse (Lux) Institutional Target Volatility Fund, Credit Suisse (Lux) Qatar Enhanced Short Duration Fund, Credit Suisse (Lux) Multi-Strategy Alternative Fund and the Credit Suisse (Lux) Multi-Strategy Bond Fund.

The U.S. Federal Reserve previously ordered the bank to strengthen its anti-money laundering (AML) procedures, pointing to shortcomings in its U.S. business.

Credit Suisse Posts $275 Million Loss After Taking Hit Over Hedge Fund …

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