Credit score Suisse slashes govt bonuses after scandals at Archegos and Greensill

Credit score Suisse has chopped bonuses for it senior executives by 64 per cent after a 12 months throughout which the financial institution suffered heavy losses from the collapse of household workplace Archegos Capital and specialist finance firm Greensill.

Chief govt Thomas Gottstein’s general pay decreased by 43 per cent to SFr3.8mn ($4mn), whereas his variable pay dropped 77 per cent. The very best paid govt at Credit score Suisse final 12 months was chief monetary officer David Mathers, who obtained SFr4.1mn in whole pay.

“2021 has been an unprecedented and uniquely difficult 12 months for Credit score Suisse,” stated Kai Nargolwala, chair of the board’s remuneration committee.

Credit score Suisse additionally grew to become the most recent financial institution to stipulate its Russian danger on Thursday, because it detailed a gross credit score publicity of SFr1.6bn on the finish of 2021.

The lender stated this included derivatives and financing exposures in its funding financial institution, commerce finance exposures in its home Swiss financial institution and loans in its wealth enterprise.

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It added that after making an allowance for hedges, ensures, insurance coverage and collateral, its web danger publicity was SFr848mn.

As well as, Credit score Suisse stated its Russian subsidiaries — which make use of 125 employees — held SFr195mn of property.

With out offering particulars, the financial institution stated it had “minimal whole credit score exposures in direction of particularly sanctioned people” in its wealth administration enterprise, which traditionally has been a favoured lender for wealthy Russians.

“In purely monetary phrases, we’ve got reviewed our positions and consider that the financial institution’s publicity in relation to Russia is well-managed, with applicable techniques in place to handle related dangers,” stated Gottstein.

“The present surroundings means making troublesome choices and managing by means of difficult conditions, however all the time with a transparent sense of perspective and the need to do the precise factor.”

On Monday, rival Swiss financial institution UBS stated it had round $200mn of publicity to Russian property used as collateral in Lombard lending, that are loans secured in opposition to a portfolio of liquid property comparable to equities and bonds, and different secured financing.

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UBS additionally revealed it had $10mn of loans excellent to purchasers hit by western sanctions imposed in response to Russia’s invasion of Ukraine. The world’s largest wealth supervisor stated that its direct danger publicity to Russia was $634mn on the finish of 2021, out of its whole rising market publicity of $20.9bn.

By comparability, Austria’s Raiffeisen reported a direct publicity to Russia of €22.9bn, whereas France’s Société Générale and Crédit Agricole reported €18.6bn and €4.9bn of publicity, respectively, and ING of the Netherlands reported €6.7bn.

On Wednesday, UniCredit warned that it confronted losses of about €7bn in an “excessive situation” whereby its total Russian enterprise was worn out.

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