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Given the sheer number of fines and penalties paid by Credit Suisse in the last three months of 2021, and all of the future fines and penalties (and maybe worse) that the bank undoubtedly must be preparing for—and also the fact that it told us this would be happening—it’s not exactly shocking to learn that the little Swiss bank that could(n’t do anything right) had a bad fourth quarter.

The Swiss lender posted a full-year net loss of 1.57 billion Swiss francs ($1.7 billion), well below expectations of a 377.95 million Swiss franc loss, according to Refinitiv. The bank reported a fourth quarter net loss attributable to shareholders of 2.01 billion Swiss francs. Analysts had expected a profit of 25.73 million Swiss francs.

The bank said it took “major litigation provisions” of 1.1 billion Swiss francs in 2021.

No kidding. Still, the Swiss haven’t completely lost their ability to surprise: As it happens—despite Credit Suisse’s exit from business that at best don’t make it any money—things were way, way worse than even than even those top-line numbers indicate.

Revenue fell across the board, and next year’s expenses are now expected to be at the top end of the range set out in November’s turnaround plan, partly due to more bonuses being paid rather than deferred…. The board has decided it won’t publish any part of the independent report into its Greensill scandal, unlike the Archegos report, which it published in full. While confidentiality is understandable given the bank’s legal actions to recover losses, it is disappointing as some limited disclosure of the conclusions and changes made could have shown the cleanup in action, reassuring investors.

Overall, Thursday’s news feeds an uncomfortable feeling that the bank’s turnaround, which is difficult for investors to observe, might be slowing or veering off track….

Yea, whatever could have given them the idea that things were not quite going according to plan in Zürich?

You know where things are going to plan? Nay, even better than to plan? Paris.

Societe Generale…. reported a net income of 5.64 billion euros ($6.44 billion) for the full year 2021. Analysts had expected net income to come in at 4.4 billion euros for the period, according to Refinitiv….

“2021 marks a milestone for the Societe Generale Group, which achieved the best financial results in its history,” Frederic Oudea, the bank’s chief executive officer, said in a statement…. Shares of Societe Generale are up by around 100% over the last 12 months.

And you know what that means!

“I won’t give you the exact figure but it will rise massively,” [SocGen investment banking chief Slawomir Krupa] said in response to a question about bonuses.

Credit Suisse ends tumultuous year with big loss as litigation costs bite [CNBC]
More Unwelcome Surprises at Credit Suisse [WSJ]
Societe Generale beats expectations to post its best annual performance ever [CNBC]
SocGen Sees Bonus Pool Rising ‘Massively’ After Record Year [Bloomberg]

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