Credit Suisse froze $10.6bn of Russia-linked client assets in Q1
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Credit Suisse froze around $10.63bn (CHF 10.4bn) of client assets in Q1 2022 after Russia was hit by sanctions by the US and its allies over its military attack on Ukraine.
The Swiss bank divulged the figures in its Q122 financial report which details its first-quarter results announced last week.
It showed a CHF10.4bn impact on the wealth management assets of the bank linked to assets frozen in the wake of Russia sanctions.
Credit Suisse stated: "1Q22, CHF 10.4bn of assets under management were reclassified to assets under custody due to the imposed sanctions."
The report also showed that the bank's Russian clients currently have less than 4% of assets under management in its wealth management division.
Last week, Credit Suisse posted a net loss of CHF273m for Q1 driven primarily by legal expenses as well as the fallout from the Russia-Ukraine war.
The firm's latest financial report shows that the gross impaired loans had increased by CHF230m from the end of 2021 in wealth management.
According to the bank, this was "mainly driven by aviation and yacht finance, lombard lending, export finance and European mortgages, partially offset by a decrease in ship finance."
"The increase in impaired loans included adverse impacts from Russia's invasion of Ukraine and related sanctions," The bank stated in the report.
The bank also added that it is continuing to assess the impact of already issued sanctions, countermeasures by the Russian government and possible future escalations, on its exposure and client relationships.
In March, a report by Bloomberg said that Credit Suisse will stop pursuing new business in Russia in a bid to further distance itself from the country.
The bank was also helping employees in Russia to move to other locations after cutting roles in the country.
Previously, the Zurich-based lender said that its market risk exposure to Russia was "not significant" and will start applying sanctions as a matter of "principle and policy ".
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